Beta Corporation is a manufacturing firm that is considering two acquisition targets.Gamma is a computer firm, while Delta is a manufacturing company.The relevant data are as follows:

The basis for the merger will be a share-for-share exchange based on market prices, and the share value of the combined firm is expected to remain unchanged.What would be the immediate effect of the two mergers on Beta Corp.'s earnings per share and price-earnings ratio? What other factors are important in Beta's analysis of its merger possibilities?

Question

Beta Corporation is a manufacturing firm that is considering two acquisition targets.Gamma is a computer firm, while Delta is a manufacturing company.The relevant data are as follows:
  
The basis for the merger will be a share-for-share exchange based on market prices, and the share value of the combined firm is expected to remain unchanged.What would be the immediate effect of the two mergers on Beta Corp.'s earnings per share and price-earnings ratio? What other factors are important in Beta's analysis of its merger possibilities?

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The Answer of Beta Corporation is a manufacturing firm that is considering two acquisition targets.Gamma is a computer firm, while Delta is a manufacturing company.The relevant data are as follows:
  
The basis for the merger will be a share-for-share exchange based on market prices, and the share value of the combined firm is expected to remain unchanged.What would be the immediate effect of the two mergers on Beta Corp.'s earnings per share and price-earnings ratio? What other factors are important in Beta's analysis of its merger possibilities?

Beta Corporation Is a Manufacturing Firm That Is Considering Two