The post-merger earnings per share for Barnes Enterprises. Introduction: Earnings per share (EPS): It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to a pay higher price for one share of the company.Â

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Answer 1

Question

Chapter 20, Problem 6P

a.

Summary Introduction

To calculate: The post-merger earnings per share for Barnes Enterprises.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to a pay higher price for one share of the company.Â

b.

Summary Introduction

To explain: The reasons that the EPS of Barnes Enterprises changed.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to pay a higher price for one share of the company.Â

c.

Summary Introduction

To determine: Whether Barnes Enterprises would be at a better state after the merger.

Introduction:

Merger:

An agreement between two already existing companies that combines them to form one single company is termed as a merger. This is done for expansion of business, its share in the market and value of shareholders.

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Answer 2

Question

Chapter 20, Problem 6P

a.

Summary Introduction

To calculate: The post-merger earnings per share for Barnes Enterprises.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to a pay higher price for one share of the company.Â

b.

Summary Introduction

To explain: The reasons that the EPS of Barnes Enterprises changed.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to pay a higher price for one share of the company.Â

c.

Summary Introduction

To determine: Whether Barnes Enterprises would be at a better state after the merger.

Introduction:

Merger:

An agreement between two already existing companies that combines them to form one single company is termed as a merger. This is done for expansion of business, its share in the market and value of shareholders.

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Answer 3

Question

Chapter 20, Problem 6P

a.

Summary Introduction

To calculate: The post-merger earnings per share for Barnes Enterprises.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to a pay higher price for one share of the company.Â

b.

Summary Introduction

To explain: The reasons that the EPS of Barnes Enterprises changed.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to pay a higher price for one share of the company.Â

c.

Summary Introduction

To determine: Whether Barnes Enterprises would be at a better state after the merger.

Introduction:

Merger:

An agreement between two already existing companies that combines them to form one single company is termed as a merger. This is done for expansion of business, its share in the market and value of shareholders.

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Answer 4

Question

Chapter 20, Problem 6P

a.

Summary Introduction

To calculate: The post-merger earnings per share for Barnes Enterprises.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to a pay higher price for one share of the company.Â

b.

Summary Introduction

To explain: The reasons that the EPS of Barnes Enterprises changed.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to pay a higher price for one share of the company.Â

c.

Summary Introduction

To determine: Whether Barnes Enterprises would be at a better state after the merger.

Introduction:

Merger:

An agreement between two already existing companies that combines them to form one single company is termed as a merger. This is done for expansion of business, its share in the market and value of shareholders.

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Answer 5

Chapter 20, Problem 6P

a.

Summary Introduction

To calculate: The post-merger earnings per share for Barnes Enterprises.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to a pay higher price for one share of the company.Â

b.

Summary Introduction

To explain: The reasons that the EPS of Barnes Enterprises changed.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to pay a higher price for one share of the company.Â

c.

Summary Introduction

To determine: Whether Barnes Enterprises would be at a better state after the merger.

Introduction:

Merger:

An agreement between two already existing companies that combines them to form one single company is termed as a merger. This is done for expansion of business, its share in the market and value of shareholders.

Answer 6

Chapter 20, Problem 6P

a.

Summary Introduction

To calculate: The post-merger earnings per share for Barnes Enterprises.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to a pay higher price for one share of the company.Â

Answer 7

Chapter 20, Problem 6P

a.

Summary Introduction

To calculate: The post-merger earnings per share for Barnes Enterprises.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to a pay higher price for one share of the company.Â

Answer 8

b.

Summary Introduction

To explain: The reasons that the EPS of Barnes Enterprises changed.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to pay a higher price for one share of the company.Â

Answer 9

b.

Summary Introduction

To explain: The reasons that the EPS of Barnes Enterprises changed.

Introduction:

Earnings per share (EPS):

It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to pay a higher price for one share of the company.Â

Answer 10

c.

Summary Introduction

To determine: Whether Barnes Enterprises would be at a better state after the merger.

Introduction:

Merger:

An agreement between two already existing companies that combines them to form one single company is termed as a merger. This is done for expansion of business, its share in the market and value of shareholders.

Answer 11

c.

Summary Introduction

To determine: Whether Barnes Enterprises would be at a better state after the merger.

Introduction:

Merger:

An agreement between two already existing companies that combines them to form one single company is termed as a merger. This is done for expansion of business, its share in the market and value of shareholders.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 20 - Prob. 1DQ Ch. 20 - Prob. 2DQ Ch. 20 - Prob. 3DQ Ch. 20 - Prob. 4DQ Ch. 20 - What is synergy? What might cause this result? Is...Ch. 20 - Prob. 6DQ Ch. 20 - Prob. 7DQ Ch. 20 - Prob. 8DQ Ch. 20 - Prob. 9DQ Ch. 20 - Prob. 10DQ

The post-merger earnings per share for Barnes Enterprises. Introduction: Earnings per share (EPS): It is the profit per outstanding share of a public company. A higher EPS indicates a higher value of the company because investors are ready to a pay higher price for one share of the company.Â

Solution Summary: The author calculates the post-merger earnings per share for Barnes Enterprises because it has a higher P/E ratio than that of Noble Corporation.

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