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Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You ar
Posted: Sun Apr 10, 2022 8:43 am
by answerhappygod
- Your Company Has Earnings Per Share Of 4 It Has 1 Million Shares Outstanding Each Of Which Has A Price Of 40 You Ar 1 (229.38 KiB) Viewed 22 times
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 $35. 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 earnings per share be after the merger? Your new earnings per share will be $ (Round to the nearest cent.)