ABCD CORPO is determined to report earnings per share of ₱2.30. It therefore acquires the TECH Corporation. There are no gains from merging. In exchange for TECH Corporation shares, Manila Online Derby issues just enough of its own shares to ensure its ₱2.30 earnings per share objective. Complete the table below for the merged firm.   ABCD CORP TECH CORP Merged Firm Earnings per share ₱2.00 ₱3.00 ₱2.30 Price per share ₱30 ₱15      Price-earnings ratio 15 5   Number of shares 170,000 270,000   Total earnings ₱340,000 ₱810,000     Total market value ₱5,100,000 ₱4,050,000   Please answer immediately thank you

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter23: Corporate Restructuring
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ABCD CORPO is determined to report earnings per share of ₱2.30. It therefore acquires the TECH Corporation. There are no gains from merging. In exchange for TECH Corporation shares, Manila Online Derby issues just enough of its own shares to ensure its ₱2.30 earnings per share objective.

Complete the table below for the merged firm.

  ABCD CORP TECH CORP Merged Firm
Earnings per share ₱2.00 ₱3.00 ₱2.30
Price per share ₱30 ₱15     
Price-earnings ratio 15 5  
Number of shares 170,000 270,000  
Total earnings ₱340,000 ₱810,000    
Total market value ₱5,100,000 ₱4,050,000

 

Please answer immediately thank you 

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