Assume the following financial data for Noble Corporation and Barnes Enterprises: a. If all the shares of

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Assume the following financial data for Noble Corporation and Barnes Enterprises:


Assume the following financial data for Noble Corporation and Barnes


a. If all the shares of the Noble Corporation are exchanged for those of Barnes Enterprises on a share-for-share basis, what will post merger earnings per share be for Barnes Enterprises?
b. Explain why the earnings per share of Barnes Enterprises changed.
c. Can we necessarily assume that Barnes Enterprises is better off after themerger?

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Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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