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please answer the quesition ? an 4 out of Shire PLC is an Irish-headquartered specialty pharmaceutical firm with global operations in more than 100 countries.
please answer the quesition ?
an 4 out of Shire PLC is an Irish-headquartered specialty pharmaceutical firm with global operations in more than 100 countries. Originating in the United Kingdom, the firm has substantial operations in the United States. Following the withdrawal of American based pharmaceutical firm AbbVie's bid to acquire Shire due to concerns about new tax inversion rules, Shire's stock plummeted almost 30%. To support its share price, Shire announced its intention to acquire a string of smaller firms with proven treatments for rare diseases. Shire PLC currently has a market price per share of $60 is considering the acquisition of Target Company (Market price per share $35) in a stock for stock transaction in which Target Company would receive $40.00 for each share of its common stock. Shire PLC does not expect any change in its price/earnings multiple after the merger. Earnings available for common stock for Acquiring and Target company are $150,000 and $30,000 respectively. Also, the number of shares of common stock outstanding is 60,000 and 18,000 respectively. What is the Post-merger EPS of the combined companies Step by Step Solution
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