Question
San Miguel Corporation acquires ABC Corporation. Prior to the acquisition San Miguel Corporation has a total earnings of P1,000,000 and 400,000 equity shares while ABC
San Miguel Corporation acquires ABC Corporation. Prior to the acquisition San Miguel Corporation has a total earnings of P1,000,000 and 400,000 equity shares while ABC Corporation has P450,000 earnings and 250,000 shares outstanding. Both shares have the same market price. The agreement involves a one is to one ratio, so 250,000 San Miguel Corporation shares will be traded.
How much will the San Miguel Corporationtotal earnings after the acquisition?
Answer:PAnswer
How many outstanding new shares will there be after the acquisition?
Answer:Answer shares
What is the new earnings per share?
Answer:PAnswer
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Guide To The Study Of Auditing 1914
Authors: Samuel F. Racine
1st Edition
0266614493, 978-0266614494
