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Required information Total earnings Number of shares outstanding Earnings per share Price/earnings Market price/share Company A $2,000,000 400,000 Company B $1,000,000 100,000 $5.0 $10.00
Required information Total earnings Number of shares outstanding Earnings per share Price/earnings Market price/share Company A $2,000,000 400,000 Company B $1,000,000 100,000 $5.0 $10.00 6X $30.00 3X $30.00 Assume Company A pays a 20% premium for Company B in a pooling of interests' transaction. Calculate the post-merger EPS for Company A. Multiple Choice $10.00 $5.00 $7.50 $6.00
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
8th Edition
9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292
