Prior to the merger, Glassons has $1,250 in total earnings with 750 shares outstanding at a market price per share of $42. Country Road has $740 in total earnings with 220 shares outstanding at $18 per share. Assume Glassons acquires Country Road via an exchange of stock at a price of $20 for each share of Country Road's stock. Both Glassons and Country Road have no debt outstanding. What will the earnings per share of Glassons be after the merger?

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
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Prior to the merger, Glassons  has $1,250 in total earnings with 750 shares outstanding at a market price per share of $42. Country Road  has $740 in total earnings with 220 shares outstanding at $18 per share. Assume Glassons  acquires Country Road  via an exchange of stock at a price of $20 for each share of Country Road's stock. Both Glassons  and Country Road  have no debt outstanding. What will the earnings per share of Glassons  be after the merger?

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