Ratio of exchange and EPS Marla's Cafe is attempting to acquire the Victory Club. Certain financial data on these corporations are summarized in the following table. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Item Earnings available for common stock Number of shares of common stock outstanding Market price per share Marla's Cafe $30,000 60,000 $10 Victory Club D $6,500 5,000 $23 Marla's Cafe has sufficient authorized but unissued shares to carry out the proposed merger. If the ratio of exchange is 1.6, what will be the earnings per share (EPS) based on the original shares of each firm? The EPS for Marla's original shareholders after the merger is $. (Round to three decimal places.)
Ratio of exchange and EPS Marla's Cafe is attempting to acquire the Victory Club. Certain financial data on these corporations are summarized in the following table. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Item Earnings available for common stock Number of shares of common stock outstanding Market price per share Marla's Cafe $30,000 60,000 $10 Victory Club D $6,500 5,000 $23 Marla's Cafe has sufficient authorized but unissued shares to carry out the proposed merger. If the ratio of exchange is 1.6, what will be the earnings per share (EPS) based on the original shares of each firm? The EPS for Marla's original shareholders after the merger is $. (Round to three decimal places.)
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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Transcribed Image Text:Ratio of exchange and EPS Marla's Cafe is attempting to acquire the Victory Club. Certain financial data on these corporations are summarized in the following table. (Click on the
icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)
Item
Earnings available for common stock
Number of shares of common stock outstanding
Market price per share
Marla's Cafe
$30,000
60,000
$10
Victory Club
$6,500
5,000
$23
Marla's Cafe has sufficient authorized but unissued shares to carry out the proposed merger. If the ratio of exchange is 1.6, what will be the earnings per share (EPS) based on the
original shares of each firm?
The EPS for Marla's original shareholders after the merger is $. (Round to three decimal places.)
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