Firm XY is planning on merging with Firm YZ. Firm XY will pay Firm YZ's shareholders the current value of their shares in shares of Firm XY. Firm XY currently has 39 000 shares outstanding at a market price of R40 a share. Firm YZ has 22 000 shares outstanding at a price of R17 a share. The after-merger earnings will be R78 000.
What will the earnings per share be after the merger?
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2. POST ACQUISITION VALUE CPI, Inc. is acquiring JW for R470 000 in cash. CPI has 27 000 shares outstanding at a market value of R320 a share. JW has 32 000 shares outstanding at a market price of R140 a share. Neither firm has any debt. The synergy value of the acquisition is R18 000. What is the value of CPI after the acquisition? 3. NUMBER OF NEW SHARES TO BE ISSUED FOR ACQUISITION GM Corporation is being acquired by BKF Ltd. for...
Alpha is planning on merging with Beta. Alpha will pay Beta's shareholders the current value of their equity in shares of Alpha. Alpha currently has 4,200 shares of equity outstanding at a market price of £40 a share. Beta has 2,500 shares outstanding at a price of £18 a share. The after-merger earnings will be £8,800. What will the earnings per share be after the merger?
Your company has earnings per share of $3.96 . It has 1.2 million shares outstanding, each of which has a price of $48. You are thinking of buying TargetCo, which has earnings per share of $0.99, 1.4 million shares outstanding, and a price per share of $25. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. a. If you pay no premium to buy TargetCo, what will your earnings per share...
a 63) Firm X has total earnings ofS49,000, a market value per share of S64, abook value share of $38, and has 25,000 shares outstanding. Firm Y has total earnings of $34,000, a market value per share of $21, a book value per share of $12, and has 22,000shares outstanding. Assame Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $2 per share. Also assume neither firm has any debe before...
just need part d please show equations
Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You are thinking of buying TargetCo, which has earnings per share of $2,1 million shares outstanding, and a price per share of $25. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. a. If you pay no premium to buy TargetCo, what will...
Your company has earnings per share of $8. It has 1 million shares outstanding, each of which has a price of $60. You are thinking of buying TargetCo, which has earnings per share of $4, 1 million shares outstanding, and a price per share of $45. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. Complete parts a through d below. a. If you pay no premium to buy TargetCo, what will...
Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You are thinking of buying TargetCo, which has earnings per share of $2,1 million shares outstanding, and a price per share of $25. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. a. If you pay no premium to buy TargetCo, what will be your earnings per share after the...
World Enterprises is determined to report earnings per share of $2.05. It therefore acquires the Wheelrim and Axle Company. You are given the following facts: World Enterprises Wheelrim and Axle Merged Firm Earnings per share $ 1.50 $ 2.00 $2.05 Price per share $ 30.00 $ 20.00 ? Price–earnings ratio 20 10 ? Number of shares 110,000 200,000 ? Total earnings $ 165,000 $ 400,000 ? Total market value $ 3,300,000 $ 4,000,000 ? There are no gains from merging....
pany has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $38. You are thinking of buying TargetCo, which has earnings of $1 per share, 1 million shares outstanding and a price per share of $21. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. Suppose you offered an exchange ratio such that, at current p share prices for both firms, the offer...
Your company has earnings per share of $5. It has 1 million shares outstanding, each of which has a price of $42. You are thinking of buying TargetCo, which has earnings of $1 per share, 1 million shares outstanding, and a price per share of $26. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. Suppose you offered an exchange ratio such that, at current pre-announcement share prices for both firms, the...