The following table show pre-merger figures of ch


The following table show pre-merger figures of CH Enterprises and ComYon Corporation: CH Enterprises (Pre-Merger) ComYon Corp.(Pre-Merger) CH Enterprises (Post-Merger) 1) EPS $2.00 $2.00 ? 2) Price per Share $40 $20 ? 3) P/E Ratio 20 10 ? 4) # of Shares 100,000 100,000 ? 5) Total Earnings $200,000 $200,000 ? 6) Total Market Value $4,000,000 $2,000,000 ? 7) Current Earnings per Dollar Invested in stock (line 1/line 2) $.05 $.10 ? Note: This merger will produce no gains. Thus, total earnings and total market value should be unaffected by the merger. But earnings per share increase. CH Enterprises will use 50,000 of its shares (proced at $40) to acquire the 100,000 shares of ComYon (priced at $20). Complete the table with the correct postp-merger figures.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The following table show pre-merger figures of ch
Reference No:- TGS01209939

Expected delivery within 24 Hours