Question
Firm XY is planning on merging with Firm YZ. Firm XY will pay Firm YZ's shareholders the currentvalue of their shares in shares of Firm
Firm XY is planning on merging with Firm YZ. Firm XY will pay Firm YZ's shareholders the currentvalue of their shares in shares of Firm XY. Firm XY currently has 39 000 shares outstanding at amarket price of R40 a share. Firm YZ has 22 000 shares outstanding at a price of R17 a share. Theafter-mergerearningswillbeR78 000.
Whatwill theearnings persharebe after themerger?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
