Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone please solve a,b,c and d properly? very thanks. World Enterprises is determined to report earnings per share of $2.80. It therefore acquires the

can someone please solve a,b,c and d properly? very thanks.
image text in transcribed
image text in transcribed
World Enterprises is determined to report earnings per share of $2.80. It therefore acquires the Wheelrim and Axle Company. There are no gains from merging. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure its $2.80 earnings per share objective. a. Complete the table below for the merged firm. b. How many shares of World Enterprises are exchanged for each share of Wheelim and Axle? c. What is the cost of the merger to World Enterprises? d. What is the change in the total value of the World Enterprises shares that were outstanding before the merger? Complete this question by entering your answers in the tabs below. Complete the table below for the merged firm. Note: Do not round intermediate calculations. Round "Price per share" and "Price-earnings ratio" to 2 decimal places and other answers to the nearest whole number. Iorld Enterprises is determined to report earnings per share of $2.80. It therefore acquires the Wheelrim and Axle Company. The e no gains from merging. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to nsure its $2.80 earnings per share objective. a. Complete the table below for the merged firm. b. How many shares of World Enterprises are exchanged for each share of Wheelrim and Axle? c. What is the cost of the merger to World Enterprises? d. What is the change in the total value of the World Enterprises shares that were outstanding before the merger? Complete this question by entering your answers in the tabs below. What is the change in the total value of the World Enterprises shares that were outstanding before the merger? Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar. Enter your answer as a positive value. The market value of the original World shareholders' shares increased by

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Basic Finance An Introduction To Financial Institutions Investments And Management

Authors: Herbert B. Mayo, Michael J Lavelle

13th Edition

0357714741, 978-0357714744

More Books

Students also viewed these Finance questions

Question

=+5.5. Suppose that X has mean m and variance o2.

Answered: 1 week ago