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:

Scarcity

The condition of being in short supply; a situation in which something cannot satisfy all those who want it.

Resistance

The refusal to accept or comply with something; the attempt to prevent something by action or argument.

Overheard Messages

Information or communication unintentionally caught or received from others' conversations, which might not have been meant to be directly shared with the listener.

Advertisement Irritation

The annoyance and displeasure experienced by consumers as a result of aggressive or excessive marketing.