Problems 2 and 4 I need help with?
lil kank is eaming $5 per share. The acquiring institution 1 200,000 shares of common stock, whereas the acquired instirution hs 50,000 shares of suock outstanding Stock will be exchanged mh tion exactly at its current market price. Most recenrly, the acquiring bank het earnings of $1,200,000 and the acquired banking firm reported net catning 300,000. Following this merget, comhined earming of $1,600,000 are expecteu in this merger transac of b. Suppose everything is the same as described in part a, however, the acquired this affect the banks shares sell for $36,00 per share ather than $20.00lowsi ale postmerger EPS Under the following sctarios, calculace the merger premihen and the exchunge ratdio a. The acquired financial firm's sock i elling u the market today at ser ar while the acquiring institution's stock is trading at $20 pet ing firm's stockholders have agreed to extend to sharcholders of the target ficm a bonus of $5 per share. The acquired fitm has 30.000 shares of common stock outstanding, and the acquiring institution has S0,000commun equity sharcs Com- bined earnings after the merger are expected to remain at their premerger level of $1,625,000 (where the acquiring firm earned $1.030,000 and the acquired insciru tion $625,000). What is the pstmerger EPS b. The acquiring financial-service provider repots hat its common stock is selling in today's market at $30 per share. In contrast, the aquired insrinution's equity share are trading at $20 per share. To make the merger sacceed, the acquised firm' shareholders will be given a bonus of $2.00 per share. The acquiring institution has 120,000 shares of common stock issued and outstanding, while the acquired firm has issued 40,000 equity shares The acquiring fis reported premerger annual carnings of $850,000, and the acquired institution earned $150,000 Afer the merger, earnings are expected to decline to $900.000 b there any evidence of dilution of ownenhip or eaming in cither merger tranaction The Goldford metropolitan arca is presently served by five depository with total deposits as follows mlon