Question

In: Finance

Amoril Co. currently has 3,000 shares outstanding each sold for $150, whereas, Poter Inc. has 1,500...

Amoril Co. currently has 3,000 shares outstanding each sold for $150, whereas, Poter Inc. has 1,500 shares outstanding each sold for $100. The earnings per share for Amoril Co. and Poter Inc. is S12 per share. Amoril Co. decides to acquire Poter Inc. by offering one new share of Amoril Co. for every three shares of Poter Inc. Assume that there is no economic gain from the merger.

1- what is the earning per share for amoril co. after merger ?

2- what is the price earnings ratio of amoril co. after the merger ?

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Coleman Corporation (E&P of $720,000) has 3,000 shares of common stock outstanding. Fred owns 1,500 shares...
Coleman Corporation (E&P of $720,000) has 3,000 shares of common stock outstanding. Fred owns 1,500 shares and his wife, Angelia, owns 1,500 shares. Fred and Angelia each have a basis of $90,000 in their Coleman Corporation stock. In the current year, Coleman Corporation redeems 1,000 shares from Fred for $250,000. With respect to the distribution in redemption of Fred's stock in Coleman Corporation: Group of answer choices Fred has dividend income of $250,000. Fred has a capital gain of $190,000...
Microsoft Co. is considering a takeover of Zoom Inc. Microsoft has 150 Million shares outstanding that...
Microsoft Co. is considering a takeover of Zoom Inc. Microsoft has 150 Million shares outstanding that are currently trading at $50 per share. Zoom has 20 Million shares outstanding trading at $25 per share. Microsoft’s Board of Directors believes that Zoom is currently not operated efficiently. The appropriate discount rate for both firms is 10%. Both firms face a 20% tax rate. a) Suppose Microsoft has offered to pay Zoom’s shareholders $600 Million in cash to acquire Zoom. What is...
ABC Inc currently has 500,000 shares outstanding at $44 each. The company is proposing a rights...
ABC Inc currently has 500,000 shares outstanding at $44 each. The company is proposing a rights offering with subscription price set at $35. Shareholders will need to have four rights to exercise their right to buy each new share. I. What is the new market value of the company after the rights issue? II. What is the value of each right? What is the ex-rights price of shares? III. ABC managers want the ex-rights price to be $42.80. What should...
ABC Inc currently has 500,000 shares outstanding at $44 each. The company is proposing a rights...
ABC Inc currently has 500,000 shares outstanding at $44 each. The company is proposing a rights offering with subscription price set at $35. Shareholders will need to have four rights to exercise their right to buy each new share. I. What is the new market value of the company after the rights issue? II. What is the value of each right? What is the ex-rights price of shares? III. ABC managers want the ex-rights price to be $42.80. What should...
Brownfield Inc. has 1,500 bonds outstanding that are selling for $932 each. The bonds carry a...
Brownfield Inc. has 1,500 bonds outstanding that are selling for $932 each. The bonds carry a 5.0 percent coupon, pay interest semi-annually, and mature in 12.5 years. The company also has 11,500 shares of 6% preferred stock at a market price of $30 per share. This month, the company paid an annual dividend in the amount of $1.50 per share. The dividend growth rate is 4.0 percent. The common stock is priced at $30 a share and there are 35,500...
Inc. has 1,500 bonds outstanding that are selling for $932 each. The bonds carry a 5.0...
Inc. has 1,500 bonds outstanding that are selling for $932 each. The bonds carry a 5.0 percent coupon, pay interest semi-annually, and mature in 12.5 years. The company also has 11,500 shares of 6% preferred stock at a market price of $30 per share. This month, the company paid an annual dividend in the amount of $1.50 per share. The dividend growth rate is 4.0 percent. The common stock is priced at $30 a share and there are 35,500 shares...
ITT Inc. has 1,500 bonds outstanding that are selling for $932 each. The bonds carry a...
ITT Inc. has 1,500 bonds outstanding that are selling for $932 each. The bonds carry a 5.0 percent coupon, pay interest semi-annually, and mature in 12.5 years. The company also has 11,500 shares of 6% preferred stock at a market price of $30 per share. This month, the company paid an annual dividend in the amount of $1.50 per share. The dividend growth rate is 4.0 percent. The common stock is priced at $30 a share and there are 35,500...
Kirksville Inc. has 1,500 bonds outstanding that are selling for $932 each. The bonds carry a...
Kirksville Inc. has 1,500 bonds outstanding that are selling for $932 each. The bonds carry a 5.0 percent coupon, pay interest semi-annually, and mature in 12.5 years. The company also has 11,500 shares of 6% preferred stock at a market price of $30 per share. This month, the company paid an annual dividend in the amount of $1.50 per share. The dividend growth rate is 4.0 percent. The common stock is priced at $30 a share and there are 35,500...
Kirksville Inc. has 1,500 bonds outstanding that are selling for $932 each. The bonds carry a...
Kirksville Inc. has 1,500 bonds outstanding that are selling for $932 each. The bonds carry a 5.0 percent coupon, pay interest semi-annually, and mature in 12.5 years. The company also has 11,500 shares of 6% preferred stock at a market price of $30 per share. This month, the company paid an annual dividend in the amount of $1.50 per share. The dividend growth rate is 4.0 percent. The common stock is priced at $30 a share and there are 35,500...
Sanders and Marks, Inc. currently has 1,000,000 common shares outstanding that are currently trading at $55...
Sanders and Marks, Inc. currently has 1,000,000 common shares outstanding that are currently trading at $55 per share. When the shares were originally issued one year ago, their price was $20. The Beta of the company is 1.1 and the market risk premium is 4.5%. The company also has 250,000 shares of preferred stock outstanding for which it pays an annual dividend of $2.50 per share. These preferred shares currently trade at $60 per share. Sanders and Marks has also...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT