1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Artist 52 [7]
3 years ago
6

Prior to the merger, Firm A has $1,250 in total earnings with 750 shares outstanding at a market price per share of $42. Firm B

has $740 in total earnings with 220 shares outstanding at $21 per share. Assume Firm A acquires Firm B via an exchange of stock of 0.5 share of A’s stock for each share of B's stock. Both A and B have no debt outstanding and the merger does not create any synergy. What will the earnings per share of Firm A be after the merger? A) $2.10 B) $1.67 C) $3.36 D) $2.05 E) $2.31
Business
1 answer:
Julli [10]3 years ago
6 0

Answer:

E) $2.31

Explanation:

Shares offered to Firm B = Shares outstanding * 0.5

= 220 * 0.5

= 110 shares

Total shares of firm A after merger = Shares outstanding before merger + Shares offered to Firm B

= 750 + 110

= 860 shares

Total earnings of firm A after merger = $1,250 + 740

Total earnings of firm A after merger = $1,990

Earnings per share of firm A after merger = Total earnings of firm A after merger / Total shares of firm A after merger

Earnings per share of firm A after merger = $1,990 / 860

Earnings per share of firm A after merger = $2.31 per share

You might be interested in
What is the average life expectancy for a paraplegic?
Korolek [52]

Paraplegic is set to manifest in an individual if the person has paralysis on both of his or her lower limbs and the cause of this is likely because of an injury or spinal disease. The life expectancy of a person who has this illness is not definite because early than 18 months, there is already death within individuals who has this disease. But base on researches, its life expectancy is 18 months.

3 0
3 years ago
After you have put a marketing plan in place,it is importantly to do what
statuscvo [17]
I found the options online. it would be to monitor the results
3 0
3 years ago
Discuss the unique marketing characteristics a product or service required based on the specific phase of the product life cycle
laiz [17]

Answer: The product life cycle of a unique marketing can be characterized by introduction, growth, maturity and decline.

Explanation:

The product life cycle of a unique marketing can be characterized by introduction, growth, maturity and decline.

Introduction; This is viewed as an entry level into the market. Where the goods begin to gain a little recognition

Growth; this is described as a movement from introduction to a fast or slow consistent rapid growth of the product in the market.

Maturity; is described as the growth from the growth category, where the product gain some market stability and is now known by the public.

Decline; is the stage of slow and loss of recognition in the market space which could be caused by lack of creativity or consistency drop

While some products may stay in a prolonged maturity state, all products eventually phase out of the market due to several factors including saturation, increased competition, decreased demand and dropping sales

5 0
3 years ago
The development of money as a medium of exchange has facilitated the expansion of trade because
kap26 [50]
<span>Money is more easily portable than other things, even gold and silver. Bringing animals or salt to barter takes up a lot of space, whereas money just takes up the amount of space that a piece of paper does. Money is better than bartering for the facilitation of long distance trade for this reason.</span>
4 0
3 years ago
Assume that the accounts receivable (in millions) were $1,308 at the beginning of
IRISSAK [1]

Answer:

<em><u>hhhhhhhhhhhhhhhhggggggg</u></em>

6 0
3 years ago
Other questions:
  • Requirement 3. How much manufacturing overhead was incurred during the​ year? Is manufacturing overhead underallocated or overal
    15·1 answer
  • true or false: a supply curve describes how much a producer of services are willing to sell at different prices
    5·1 answer
  • The basis of accounting used by not-for-profit organizations in their external financial reports is
    13·1 answer
  • Racicky was in the process of buying 320 acres of ranchland. While that sale was being negotiated, Racicky signed a contract to
    6·1 answer
  • A positive result that stems from the use of return on investment (ROI) is that it encourages managers to focus on:
    10·1 answer
  • Which of the following will be accomplished by efficient allocations of the factors of production
    11·2 answers
  • In his presentation to his co-workers, Kyle encouraged his colleagues to reach their highest potential and take pride in their w
    8·1 answer
  • Consider the following simple economy that produces only three​ goods: 2009​ (Base Year) 2017 Product Quantity Price Quantity Pr
    10·1 answer
  • ​Bryant, Inc. provides the following​ data:2017 2016Cash $47,000 $25,000Accounts Receivable, Net 100,000 62,000Merchandise Inven
    13·1 answer
  • West Street Automotive is considering adding state safety inspections to its service offerings. The equipment necessary to perfo
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!