QUESTION FOUR

1. Compute and analyze
2. Compute and evaluate

Taming Mining is attempting to acquire Zaitona Mining. Selected financial data is presented for ooth companies in Table 1 below: Table 1: Financial Data for Taming Mining and Zaitona Mining Taming Mining has sufficient authorized but unissued shares to carry out the proposed merger. (a) Calculate and analyse the Earnings per Share (EPS) of Taming Mining and Zaitona Mining before the merger. (10 Marks) (b) If the ratio of exchange is 1.8, compute and evaluate the Earnings Per Share (EPS) of the merged company. (15 Marks)