After Analyzing the Particulars of Firms a and B and Their

question 21

Essay

After analyzing the particulars of Firms A and B and their proposed merger, comment on the desirability of the merger:
$$\begin{array} { | l | l | l | } \hline \text { Firm A: } & & \text { Firm B: } \\\hline \$ 16.00 & \text { Price per share } & \$ 10.00 \\\hline 8 & \text { P/Eratio } & 5 \\\hline 1,000 & \text { Shares outstarding } & 1,000 \\\hline\end{array}$$ Firm A will purchase Firm B by offering 625 shares of Firm
A.The merged firms are expected to be worth $26,000.Be sure to mention EPS of the merged entity, etc.

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Definitions:

PGA Tour

A professional golf circuit in the United States, featuring the world's top male golfers competing in various tournaments throughout the year.

Degrees Of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution, often relevant in the calculation of statistics like variance.

Standard Deviation

A quantification of how much spread or variability exists within a group of figures.

Simple Linear Regression

Simple linear regression is a method for predicting a quantitative outcome using a single explanatory variable, based on the linear relationship between them.