Hello again..still working on my homework.
Wondered if anyone could assist with a stock issue merger?
A buys B by issuing additional shares. A has agreed to give B one share of A for each share of B.
A B AB
Net income 300 100 400 (ans)
# of shares 60 20 100 (ans)
Price per Share 90 45 90 (ans)
EPS 5 (ans) 5 (ans) 4 (ans)
PE 18 (ans) 9 (ans) 22.50 (ans)
The (ans) are my fill in the blanks. The 1-A 2-B is confusing me?
Can anyone give a insight?