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.
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
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Transcribed Image Text: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 benefit of $3 million is expected in this merger, due to cost savings.
Wilson
Sales (millions)
Earnings after taxes (millions)
Common shares outstanding
(millions)
Earnings per share
Dividends per share
Common stock (price per share)
$105
$ 21
8
$
2.625
1.00
$
$
$ 32
Blanchard
$42.5
$ 4.5
2
$ 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.
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