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
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 46% (15 reviews)
tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style0 msonumberformatGeneral textaligngeneral verticalalignbottom whitespacenowrap msorotate0 msobackgroundsourceauto msopatt...View the full answer
Answered By
Ajeet Singh
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions.
I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life.
I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge.
I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields.
Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a teacher. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students.
4.90+
7+ Reviews
15+ Question Solved
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Question Posted:
Students also viewed these Accounting questions
-
The Haines Corp. shows the following financial data for 20X1 and 20X2. For each year, compute the following and indicate whether it is increasing or decreasing profitability in 20X2 as indicated by...
-
Assume the following financial data for the Wolf Corporation and Lamb Enterprises. a. If all the shares of the Wolf Corporation are exchanged for shares of the Lamb Enterprises on a share-for-share...
-
The following financial data were reported by 3M Company for 2008 and 2009 (dollars in millions). Instructions(a) Calculate the current ratio and working capital for 3M for 2008 and 2009.(b) Suppose...
-
a. Determine IC and VCE for the network of Fig. 4.115. In Figure 4.115 b. Change β to 120 (50% increase), and determine the new values of lC and VCE for the network of Fig. 4.115. c....
-
Briefly describe the roles and responsibilities of the following professional organizations in developing and maintaining auditing standards and monitoring the quality of the various auditing...
-
A circle of radius I? is placed in the first quadrant as shown in Figure 18. What is the radius r of the largest circle that can be placed between the original circle and the origin? R
-
What adverse effects on the domestic economy may follow from (a) a depreciation of the exchange rate and (b) an appreciation of the exchange rate?
-
The following is the ending balances of accounts at December 31, 2018, for the Weismuller Publishing Company. Additional Information: 1. Prepaid expenses include $120,000 paid on December 31, 2018,...
-
How does UCC work in other countries? How would this affect different types of businesses? Please be sure to validate your opinions and ideas with citations and references in APA format.
-
Assume Z has a standard normal distribution. Use Appendix Table II to determine the value for z that solves each of the following: (a) P(Z < z) = 0.9 (b) P(Z < z) = 0.5 (c) P( Z > z) = 0.1 (d) P(Z >...
-
Cooper Construction is considering purchasing new, technologically advanced equipment. The equipment will cost $625,000 with a salvage value of $50,000 at the end of its useful life of 10 years. The...
-
Maria who is single had the following items for 2010; Salary ........................$80,000 loss on sale of ss 1244 small business stock aquired 3 years ago $(60,000) long-term captial gain...
-
Cascades Enterprises ordered 4,000 brackets from McKey and Company on December 1, 2011, for a contracted price of $40,000. McKey complete manufacturing the brackets on January 17 of the next year and...
-
What is the content of arr after executing the following code? char arr[20]; int i; for(i=0; i <10; i++) *(arr + 1) = 65 + i; '\0'; *(arr + i) =
-
Based on Nike- help with bolded questions about Nike Are you marketing to consumers? If so, you have four basic choices of marketing channels. Channel A contains no intermediaries. A producer...
-
What are the various problems that could arise in Non-Return to Zero (NRZ) encoding if a continuous stream of 0s or 1s is sent?
-
What are extended events? Where can you use event sessions. Explain in your word.
-
When looking at the media, do you think advertisements in western society specifically targets toys for males and female genders?
-
Identify the difference between macronutrients and micronutrients. Give an example of each type of nutrient.
-
For each of the following transactions, indicate whether it increases, decreases, or has no effect on the following financial ratios: current ratio, debt-to-equity ratio, profit margin ratio, and...
-
The speed of sound in a gas depends on the pressure and the density. Use dimensional analysis to find the speed of sound in terms of pressure and density.
-
Periwinkle Company sold merchandise for $448; this price does not include sales tax. The state sales tax rate is 6.25%. Make the journal entry necessary to record this transaction.
-
Azure Company paid $10,800 in advance for one year of property taxes on September 24. The property taxes are for the one-year period beginning October 1. Make the journal entries necessary to record...
-
Which one of the following statements correctly describes income tax expense? a. The amount of cash paid for income taxes during the year b. The amount of income tax owed as of the end of the year c....
-
Using a Counter-Controlled While Loop To prompt the user to create 3 usernames and passwords. (JAVA)?
-
The answer has been helpful thank you, but yes could you provide the driver class in a separate message?
-
in matlab please. You are to use the same Script File as Homework 4B: Part 1 Create a Function File that takes in the following 2 vectors from your HW 4B script. The function shall be able to accept...
Study smarter with the SolutionInn App