Question
Firm A is analyzing the possible acquisition of Firm T.Firm A currently has earnings of $810,900 and 237,536 shares outstanding.Firm T currently has earnings of
Firm A is analyzing the possible acquisition of Firm T.Firm A currently has earnings of $810,900 and 237,536 shares outstanding.Firm T currently has earnings of $212,964 and 63,889 shares outstanding.If Firm A offers 1 of its shares for every 3.0 of Firm T's shares, what will be Firm A's earnings per share after the acquisition?
Question 4 options:
$3.66
$3.76
$3.86
$3.96
$4.05
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
