Calculate the post-merger earnings per share if the exchange ratio is 0.4 shares of Essex for each share of Twinsburg.(Assume total post-merger earnings are $43,740,000.)
A)$8.10
B)$7.33
C)$7.29
D)$7.42

Name: Calculate the post-merger earnings per share if the exchange ratio is 0.4 shares of Essex for each share of Twinsburg.(Assume total post-merger earnings are $43,740,000.) A)$8.10 B)$7.33 C)$7.29 D)$7.42
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

Number of new shares = 1,000,000 × 0.4 = 400,000
EPS = $43,740,000/5,400,000 = $8.10

Calculate the Post-Merger Earnings Per Share If the Exchange Ratio