Problemtangshan mining is attempting to acquire zhengsen, Ask an Expert

Accounting

Problem:

Tangshan Mining is attempting to acquire Zhengsen Mining. Here is selected financial data: Item Tangshan Mining Zhengsen Mining Earnings available for common stock $12,000,000 $2,000,000 Number of shares of stock outstanding 1,500,000 60,000 Market price per share $100 $120 Tangshan Mining has sufficient authorized but unissued shares to do the proposed merger.

Required:

Question 1: Calculate the EPS of Tangshan Mining and Zhengsen Mining before the merger.

Question 2: If the ratio of exchange is 1.8, what will be the EPS of the merged company?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169427

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