Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of
Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A. Firm A currently has 4,500 shares of stock outstanding at a market price of $40 a share. Firm B has 2,100 shares outstanding at a price of $20 a share. The after-merger earnings will be $8,200. What will the earnings per share be after the merger?
how to get $1.48 as an answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started