Question
Ratio of exchange and EPS SoccerCity is attempting to acquire the FederatedFields. Certain financial data on these corporations are summarized in the following table. Item
Ratio of exchange and EPS
SoccerCity is attempting to acquire the FederatedFields. Certain financial data on these corporations are summarized in the following table.
| Item | SoccerCity | FederatedFields | ||
| Earnings available for common stock | $50,000 | $5,000 | ||
| Number of shares of common stock outstanding | 30,000 | 3,000 | ||
| Market price per share | $16 | $27 |
SoccerCity
has sufficient authorized but unissued shares to carry out the proposed merger. If the ratio of exchange is 1.8, what will be the earnings per share (EPS) based on the original shares of each firm?
a. The EPS for SoccerCity's original shareholders after the merger is $?. (Round to three decimal places.)
b. ?
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Textbook Of Financial Accounting And Analysis
Authors: Gaurav Agrawal
1st Edition
9350840901, 9789350840900
