Assume the following financial data for Noble Corporation and Barnes Enterprises: a. If all the shares of
Question:
Assume the following financial data for Noble Corporation and Barnes Enterprises:
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? Use an approach similar to that of Table 20–3
b. Explain why the earnings per share of Barnes Enterprises changed.
c. Can we necessarily assume that Barnes Enterprises is better off after themerger?
Transcribed Image Text:
Total earnings lumber of shares of stock outstanding arnings per share Price-earnings ratio (P/E Market price per share Noble Corporation $1,200,000 600,000 $2.00 24x $48 Barnes Enterprises S3,600,000 2 400,000 1.50 32x S48
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Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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