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, ABCD CORPO 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
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, ABCD CORPO 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
Chapter23: Corporate Restructuring
Section: Chapter Questions
Problem 8P
Related questions
Question
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, ABCD CORPO issues just enough of its own shares to ensure its ₱2.30 earnings per share objective.
Complete the table below for the merged firm.
|
Please answer immediately thank you
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Business Its Legal Ethical & Global Environment
Accounting
ISBN:
9781305224414
Author:
JENNINGS
Publisher:
Cengage
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Business Its Legal Ethical & Global Environment
Accounting
ISBN:
9781305224414
Author:
JENNINGS
Publisher:
Cengage