(Answered) Assume the following financial data for the noble

Finance

Assume the following financial data for the Noble Corporation and Barnes Enterprises:

Noble Corporation	Barnes Enterprises
Total earnings	$1,820,000	$5,620,000
Number of shares of stock outstanding	650,000	2,810,000
Earnings per share	$2.80	$2.00
Price-earnings ratio (P/E)	20×	28×
Market price per share	$56	$56

a. 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

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