What is the Earning Per Share for Amoril Co. after merger? *

$12 per share

$13.55 per share

$14.89 per share

$14.65 per share

None of the above

12. What is the price earnings ratio of Amoril Co. after the merger? *

11.11

8.10

12.65

10.81

None of the above

Amoril Co. currently has 3,000 shares outstanding each sold for $150, whereas, Poter Inc. has 1,500 shares outstanding each sold for $100. The earnings per share for Amoril Co. and Poter Inc. is $12 per share. Amoril Co. decides to acquire Poter Inc. by offering one new share of Amoril Co. for every three shares of Poter Inc. Assume that there is no economic gain from the merger