Essex Industries is considering the acquisition of Twinsburg Company in a stock-for-stock exchange. The following financial data are available on both companies. (Assume no synergy is expected with this merger.) Calculate answers to nearest 0.001. Essex Twinsburg Sales $500 million $50 million Net income $40 million $3.74 million Common shares outstanding 5 million 1 million Earnings per share $8.00 $3.74 Dividends per share $3.00 $1.00 Common stock market price $64 $24 Price/earnings ratio 8 6.42 Calculate the post-merger earnings per share if the exchange ratio is 0.4 shares of Essex for each share of Twinsburg. (Assume total post-merger earnings are $43,740,000.) A) $8.10
B) $7.33
C) $7.29
D) $7.42
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Essex Industries is considering the acquisition of Twinsburg Company in a stock-for-stock exchange. The following financial data are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A factorial experiment - yields data that are analyzed by the statistical technique of factor analysis. - includes only measures that constitute ratio scales. - has more than one independent variable.
Answers (1)
Do you think greed can be a motivating factor in making financial decisions
Answers (2)
What is the main difference between mechanical and electromagnetic waves open study?
Answers (1)
Your boss has asked you to email a client to let her know that the company will be late in delivering a report she's requested. Which of the following is the appropriate way to let her know?
Answers (1)
At the end of the year, inventory has a cost of $200,000 and a net realizable value of $195,000 due to normal business circumstances.
Answers (1)
New Questions in Business
Once risks have been identified, how can they be managed?
Answers (1)
The arnold fertilizer company's stock is selling for $55 in the market and its earnings per share is $5. the company is projected to grow at a rate of 22% over the next year. what is this company's price/earnings to growth (peg ratio?
Answers (1)
Strong company applies overhead based on machine hours. at the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000.
Answers (1)
The last 50 years of declining productivity of the commercial fish populations off the northeast coast of north america reveal the impact of
Answers (1)
Which of these is NOT one of the items that can provide useful assistance to a project team to define the activities of a project? a. the major milestones from the Project Charter b. schedules from similar, previous projects c. issue logs d.
Answers (1)