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XY Co. is planning to acquire ABC Co. The merger will be effected through an exchange of stock. Additional relevant financial information for both

 

XY Co. is planning to acquire ABC Co. The merger will be effected through an exchange of stock. Additional relevant financial information for both companies is as follows: XY Co. ABC Co. $5,000,000 1,000,000 1500,000 Present earnings Shares outstanding Market price per share $50 $60 Calculate the earnings per share for XY Co. after the merger. Would you merge with ABC & Co. and why not? 400,000 M-04 M-02

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