question archive Assume the following financial data for the Noble Corporation and Barnes Enterprises:Noble CorporationBarnes EnterprisesTotal earnings$1,820,000$5,620,000Number of shares of stock outstanding650,0002,810,000Earnings per share$2
Assume the following financial data for the Noble Corporation and Barnes Enterprises:Noble CorporationBarnes EnterprisesTotal earnings$1,820,000$5,620,000Number of shares of stock outstanding650,0002,810,000Earnings per share$2
Subject:FinancePrice: Bought3
Assume the following financial data for the Noble Corporation and Barnes Enterprises:Noble CorporationBarnes EnterprisesTotal earnings$1,820,000$5,620,000Number of shares of stock outstanding650,0002,810,000Earnings per share$2.80$2.00Price-earnings ratio (P/E)20×28×Market price per share$56$56a. If all the shares of the Noble Corporation are exchanged for those of Barnes Enterprises on a share-for-share basis, what will postmerger earnings per share be for Barnes Enterprises? Use an approach similar to that in Table 20-3.b. Explain why the earnings per share of Barnes Enterprises changed.c. Can we necessarily assume that Barnes Enterprises is better off after the merger?Please explain answers.
