Question
Firm A is analyzing the possible acquisition of Firm T. Firm A currently has earnings of $848,220 and 248,468 shares outstanding. Firm T currently has
Firm A is analyzing the possible acquisition of Firm T. Firm A currently has earnings of $848,220 and 248,468 shares outstanding. Firm T currently has earnings of $222,765 and 66,829 shares outstanding. If Firm A offers 1 of its shares for every 4.5 of Firm T's shares, what will be Firm A's earnings per share after the acquisition?
options: $3.86 $3.97 $4.07 $4.17 $4.27
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Business Analysis And Valuation Using Financial Statements
Authors: Krishna G Palepu, Paul M Healy
4th Edition
032430286X, 9780324302868
