n the recent Acquisition of A Bank and Building Society Limited, the following Information is available DETAILS ECHO BANK BUILDING SOCIETY Earnings Sh.40.000,000 Sh.10,000,000 Number of shares 10,000.000 4,000,000 Earnings per share Sh. 4 Sh.2.50 Price per share Sh. 60 Sh.30 the Building Society agreed to the market exchange ratio of 0.667 At what price did the Bank offer to purchase shares of the BS? How many additional shares did the Bank Issue in this transaction What was the effect of these additional shares on Earnings Per share of the Bank?
n the recent Acquisition of A Bank and Building Society Limited, the following Information is available DETAILS ECHO BANK BUILDING SOCIETY Earnings Sh.40.000,000 Sh.10,000,000 Number of shares 10,000.000 4,000,000 Earnings per share Sh. 4 Sh.2.50 Price per share Sh. 60 Sh.30 the Building Society agreed to the market exchange ratio of 0.667 At what price did the Bank offer to purchase shares of the BS? How many additional shares did the Bank Issue in this transaction What was the effect of these additional shares on Earnings Per share of the Bank?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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In the recent Acquisition of A Bank and Building Society Limited, the following Information is available
|
DETAILS |
ECHO BANK |
BUILDING SOCIETY |
|
Earnings
|
Sh.40.000,000 |
Sh.10,000,000 |
|
Number of shares
|
10,000.000 |
4,000,000 |
|
Earnings per share
|
Sh. 4 |
Sh.2.50 |
|
Price per share
|
Sh. 60 |
Sh.30 |
the Building Society agreed to the market exchange ratio of 0.667
- At what price did the Bank offer to purchase shares of the BS?
- How many additional shares did the Bank Issue in this transaction
- What was the effect of these additional shares on Earnings Per share of the Bank?
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