Wilson Industries is considering the acquisition of the Blanchard Company in a stock-for-stock exchange. Selected financial data for the two companies are shown next. An immediate synergistic earnings be Wilson Sales (millions) Earnings after taxes (millions) Common shares outstanding (millions) Earnings per share Dividends per share Common stock (price per share) $105 E $ 21 8 $ 2.625 Blanchard $42.5 $ 4.5 2 $ 1.00 $ 32 $ 2.25 $ 0.40 $19.50 Calculate the postmerger earnings per share if the Blanchard shareholders accept an offer of $21 per share in a stock-for-stock exchange. Round your answer to the nearest cent.

Wilson Industries is considering the acquisition of the Blanchard Company in a stock-for-stock exchange. Selected financial data for the two companies are shown next. An immediate synergistic earnings be Wilson Sales (millions) Earnings after taxes (millions) Common shares outstanding (millions) Earnings per share Dividends per share Common stock (price per share) $105 E $ 21 8 $ 2.625 Blanchard $42.5 $ 4.5 2 $ 1.00 $ 32 $ 2.25 $ 0.40 $19.50 Calculate the postmerger earnings per share if the Blanchard shareholders accept an offer of $21 per share in a stock-for-stock exchange. Round your answer to the nearest cent.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 7P

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