The writer is very fast, professional and responded to the review request fast also. Thank you.
Castles in the Sand currently sells at a price-earnings multiple of 10. The firm has 2 million shares outstanding, and sells at a price per share of $40. Firm Foundation has a P/E multiple of 8, has 1 million shares outstanding, and sells at a price per share of $20.a. If Castles acquires the other firm by exchanging one of its shares for every two of FirmFoundations, what will be the earnings per share of the merged firm?b. What should be the P/E of the new firm if the merger has no economic gains? What will happen to Castles’ price per share? Show that shareholders of neither Castles nor Firm Foundation realize any change in wealth.c. What will happen to Castles’ price per share if the market does not realize that the P/E ratio of the merged firm ought to differ from Castles’ premerger ratio?d. How are the gains from the merger split between shareholders of the two firms if the market is fooled as in part (c)?
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more