After analyzing the particulars of Firms A and B and their proposed merger, comment on the desirability of the merger:
$$\begin{array} { | l | l | l | }
\hline \text { Firm A: } & & \text { Firm B: } \
\hline \$ 16.00 & \text { Price per share } & \$ 10.00 \
\hline 8 & \text { P/Eratio } & 5 \
\hline 1,000 & \text { Shares outstarding } & 1,000 \
\hline
\end{array}$$ Firm A will purchase Firm B by offering 625 shares of Firm
A.The merged firms are expected to be worth $26,000.Be sure to mention EPS of the merged entity, etc.

Question

After analyzing the particulars of Firms A and B and their proposed merger, comment on the desirability of the merger:
 $$\begin{array} { | l | l | l | } 
\hline \text { Firm A: } & & \text { Firm B: } \
\hline \$ 16.00 & \text { Price per share } & \$ 10.00 \
\hline 8 & \text { P/Eratio } & 5 \
\hline 1,000 & \text { Shares outstarding } & 1,000 \
\hline
\end{array}$$ Firm A will purchase Firm B by offering 625 shares of Firm 
A.The merged firms are expected to be worth $26,000.Be sure to mention EPS of the merged entity, etc.

Quizplus · Accepted Answer

The Answer of After analyzing the particulars of Firms A and B and their proposed merger, comment on the desirability of the merger:
 $$\begin{array} { | l | l | l | } 
\hline \text { Firm A: } & & \text { Firm B: } \
\hline \$ 16.00 & \text { Price per share } & \$ 10.00 \
\hline 8 & \text { P/Eratio } & 5 \
\hline 1,000 & \text { Shares outstarding } & 1,000 \
\hline
\end{array}$$ Firm A will purchase Firm B by offering 625 shares of Firm 
A.The merged firms are expected to be worth $26,000.Be sure to mention EPS of the merged entity, etc.

After Analyzing the Particulars of Firms a and B and Their