Question
I'm working on a Group Project for ACCT 559 Keller Graduate School Advanced Accounting that has 5 requirements. I am working on requirements 4 and
I'm working on a Group Project for ACCT 559 Keller Graduate School Advanced Accounting that has 5 requirements. I am working on requirements 4 and 5 Parent Inc. is contemplating a tender offer to acquire 80% of Subsidiary Corporation's common stock. Subsidiary's shares are currently quoted on the New York Stock Exchange at $85 per share. In order to have a reasonable chance of the tender offer attracting 80% of Subsidiary's stock, Parent believes it will have to offer at least $105 per share. If the tender offer is made and is successful, the purchase will be consummated on January 1.
The requirement is: Perform ratio analysis. Compute earnings per share for (1) the separate financial statements of Parent, Inc. prepared in #1 and (2) the consolidated financial statements contained in the pro forma consolidation worksheet prepared in #3. Also, calculate current ratio and return on average stockholders' equity for the separate company (parent) and consolidated financial statements.
I'm not sure how we get the Weighted Average C/S Outstanding. I am just looking for help in how we calculate weighted average. I didn't give any amounts so I wouldn't be able to submit any answers as my own. You would have to have the full problem to do that, which I am happy to offer but did not yet.
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