Apex Corporation is considering the purchase of Pinnacle Company in a stock-for-stock exchange. Selected data on the two companies are shown in the following table: Pinnacle $315 Sales (millions) Earnings after taxes (millions) Common shares outstanding (millions) Share price Earnings per share Dividends per share P/E ratio Dividend payout ratio $ b. 20 percent premium for Pinnacle $ c. 40 percent premium for Pinnacle Apex $750 $100 $ 50 36 $ 2.00 $0.80 18 40% $ 40 40 Assume that there are immediate synergistic benefits of $7 million if Apex and Pinnacle merge. Determine EPS for the combined company if Apex offers a (Round your answers to three decimal places): a. 10 percent premium for Pinnacle 14 $1.00 $ 0.30 14 30%

Apex Corporation is considering the purchase of Pinnacle Company in a stock-for-stock exchange. Selected data on the two companies are shown in the following table: Pinnacle $315 Sales (millions) Earnings after taxes (millions) Common shares outstanding (millions) Share price Earnings per share Dividends per share P/E ratio Dividend payout ratio $ b. 20 percent premium for Pinnacle $ c. 40 percent premium for Pinnacle Apex $750 $100 $ 50 36 $ 2.00 $0.80 18 40% $ 40 40 Assume that there are immediate synergistic benefits of $7 million if Apex and Pinnacle merge. Determine EPS for the combined company if Apex offers a (Round your answers to three decimal places): a. 10 percent premium for Pinnacle 14 $1.00 $ 0.30 14 30%

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Apex Corporation is considering the purchase of Pinnacle Company in a stock-for-stock exchange. Selected data on the two companies are shown in the following table: Apex $750 Pinnacle $215 $100 $ 30 50 30 32 11 $ 2.00 $0.90 $1.00 $0.40 16 11 45% 40% Sales (millions) Earnings after taxes (millions) Common shares outstanding (millions) Share price Earnings per share Dividends per share P/E ratio Dividend payout ratio Assume that there are immediate synergistic benefits of $3 million if Apex and Pinnacle merge. Determine EPS for the combined company if Apex offers a (Round your answers to three decimal places): a. 20 percent premium for Pinnacle $ b. 30 percent premium for Pinnacle $ c. 40 percent premium for Pinnacle $
Calculate the transaction value (in $ thousands) of a theoretical company based on the information provided below. Current Share Price $18.00 Shares Outstanding (Thousands) 5,000 Total Debt ($ Thousands) $3,700 Cash ($ Thousands) $2,100 Acquisition Premium 10%
The net income of Zia company for the year ended December 31, 2018 amounted to P5,600,000. Determine the earnings per share of Zia in the following independent cases: a. The entity has only one class of share capital, 100,000 shares with par value of P100. The entity has two classes of share capital: Preference share, 10% cumulative, P100 par 4,000,000 Ordinary share, P100 par, 100,000 shares 10,000,000 b. The entity has two classes of share capital: Preference share, 10% noncumulative, P100 par 4,000,000 Ordinary share, P100 par, 100,000 shares 10,000,000 The preference dividend for the current year was declared. c. The entity has two classes of share capital: Preference share, 10% noncumulative, P100 par 4,000,000 Ordinary share, P100 par, 100,000 shares 10,000,000 The preference dividend for the current year was not declared.
Data for Henry Company and Mayer Services are given in the following table : Item Henry Company Mayer Services Earnings available for common stock $195,000 $45,000 Number of shares of common stock outstanding 75,000 25,000 Market price per share $31 $23 Henry Company is considering merging with Mayer by swapping 1.25 shares of its stock for each share of Mayer stock. Henry Company expects its stock to sell at the same price/earnings (P/E) multiple after the merger as before merging. a. Calculate the ratio of exchange in market price. b. Calculate the earnings per share (EPS) and price/earnings (P/E) ratio for each company. c. Calculate the price/earnings (P/E) ratio used to purchase Mayer Services.
Data for Henry Company and Mayer Services are given in the following table : Item Henry Company Mayer Services Earnings available for common stock $195,000 $45,000 Number of shares of common stock outstanding 75,000 25,000 Market price per share $31 $23 Henry Company is considering merging with Mayer by swapping 1.25 shares of its stock for each share of Mayer stock. Henry Company expects its stock to sell at the same price/earnings (P/E) multiple after the merger as before merging. d. Calculate the post-merger earnings per share (EPS) for Henry Company. e. Calculate the expected market price per share of the merged firm.
Selected Answer: Company AAA is public. Selected financial information follows: Net income 35,723 Shares outstanding 9,200 Share price 75.50 Company BBB is private. It has net income of $5,500 and 2,000 shares outstanding. Using the company AAA as a comparable, what is the value per share of BBB? Enter your answer to the nearest cent (two decimal places)
Particulars No. of equity shares Profit after tax Market Price Per Share Compute the following: i) EPS of both the companies ii) Exchange Ratio Infinity Limited 6,00,000 $20,00,000 $20 Global Limited 2,00,000 $10,00,000 $15
Summary information is given for SBMA, Inc. and PCIB Company at July 1, 2016. The quoted market price of SBMA and PCIB shares are P36 and P40, respectively. SBMA and PCIB are both SMES. SBMA, Inc. Book value Fair value Book value Fair value PCIB Company P 8,000,000P 9,000,000P24,000,000P24,000,000 22,000,000 26,000,000 26,000,000 25,000,000 P30,000,000P35,000,000P50,000,000P49,000,000 5,000,000 5,000,00015,000,00015,500,000 20,000,000 3,000,000 12,000,000 P50,000,000 Current assets Plant assets Totals Liabilities Common stocks, P10 par10,000,000 ΑΡIC Retained earnings_14,000,000 Totals 1,000,000 P30,000,000 PCIB Company acquires all the net assets of SMBA by issuing 1,000,000 of its own shares. PCIB Company incurred the following out of pocket costs relating to the acquisition. Legal fees to arrange business combination Cost of SEC registration Cost of printing and issuing new stock certificates Indirect cost of combination P25,000 12,000 3,000 20,000 35,000 Finder's fees 42. Calculate…
The owners’ equity account for Rantuil Utilities Berhad are shown below: Common Share (RM2 par) - RM30,000Capital Surplus - RM285,000Retained earnings - RM648,100Total shareholder’s equity - RM963,100 If Rantuil Utilities Berhad currently sells for RM30 per share and a 10 percent share dividend is declared,i. Determine the number of new shares that will be distributed.ii. Reconstruct new owners’ equity account for Rantuil Utilities Berhad.
. Journal entries using the Cost and Equity Method of accounting for the for the following transtation : On 1/2/18 the Xylo Corp. purchased 8000 shares of ABC Co. Common Stock At $20 per share. ABC Co. has 40000 shares of Common Stock outstanding. On 10/31/18 Xylo Corp. received a $1.50 per share dividend from ABC Co. On 12/30/18 ABC Company announced earnings of for the year at $200000. Prepare the calculations and Journal Entries, in good form, if the Investment is classified as Available for sale Part A. The Cost Method. Part B The Equity Method of accounting is applicable.