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EPS and postmerger price Data for Henry Company and Mayer Services are given in the following table, Henry Company is considering merging with Mayer by
EPS and postmerger price Data for Henry Company and Mayer Services are given in the following table, Henry Company is considering merging with Mayer by swapping 15 shares of its stock for each share of Mayer stock Henry Company expects its stock to sell at the same pricelearnings (PVE) multiple after the merger as before merging a. Calculate the ratio of exchange in market price. b. Calculate the earnings per share (EPS) and pricelearnings (P/E) ratio for each company c. Calculate the price earnings (PE) ratio used to purchase Mayer Semes d. Calculate the post-merger earnings per share (EPS) for Henry Company e. Calculate the expected market price per share of the merged firm Data Table a. The ratio of exchange in market price is L?(Rond to two decimal places. b. The EPS for Herry Company is S (Round to the nearest cent ) The EPS for Mayer Services is s(Round to the nearest cent) The PIE for Henry Company is Round to two decimal places) The PE for Mayer Services is? (Round to two dermal places) c. The P/E used to purchase Mayer Services isRound to two decimal d. The post-merger EPS is (Round to the nearest cent ) e. The expected market price per share of the merged firm is s(Round to the 'nearest cent) Enter your answer in each of the answer boxes (Click on the icon located on the top-right corner of the data table below in order to copy its conten into a spreadsheet) Mayer Services Item Earnings available for common stock Number of shares of common stock outstanding 5260,000 75,000 558 $60,000 20,000 69 Market price per share Print Done
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