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World Enterprises is determined to report earnings per share of $2.79. It therefore acquires the Wheelrim and Axle Company. You are given the following facts:

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World Enterprises is determined to report earnings per share of $2.79. It therefore acquires the Wheelrim and Axle Company. You are given the following facts: Merged Firm $2.79 World Enterprises $ 2.30 $ 46.00 20 160,000 $368,000 $7,360,000 Earnings per share Price per share Price-earnings ratio Number of shares Total earnings Total market value Wheelrin and Axle $ 2.20 22.00 10 140,000 $ 300,000 $3,000,000 OK ? ? nces There are no gains from merging. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure its $2.79 earnings per share objective, Required: o. Complete the below table for the merged firm. b. How many shares of World Enterprises are exchanged for each share of Wheelrim and Axle? c. What is the cost of the merger to World Enterprises? d. What is the change in the total market value of the World Enterprises shares that were outstanding before the merger? Complete this question by entering your answers in the tabs below. Required A Required Required Required D Complete the below table for the merged firm. (Do not round intermediate calculations. Round "Price per share" to 2 decimal c. What is the cost of the merger to World Enterprises? d. What is the change in the total market value of the World Enterprises shares that were outstanding before the merger? Complete this question by entering your answers in the tabs below. ok Required A Required B Required Required D nt Complete the below table for the merged firm. (Do not round intermediate calculations. Round "Price per share" to 2 decimal places,"Price-earnings ratio" to 1 decimal place, and the other final answers to the nearest whole number.) ences Merged Firm $ 2.79 Earnings per share Price per share Price-eamings ratio Number of shares Total earnings Total market value World Wheelrim and Enterprises Axle $ 230 $ 2 20 $ 46 $ 2200 20 10 160 000 140,000 $ 368,000 $ 308,000 $ 7,360,000 $3 080 000 Required Required B

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