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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
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Coldran Aviation has voted in favor of being bought out by Arcadia Financial Corporation.
Information about each company is presented below.
| Â |
Arcadia Financial |
Coldran Aviation |
|
Price-earnings ratio |
16 |
10.8 |
|
Number of shares |
100,000 |
50,000 |
|
Earnings |
$225,000 |
$100,000 |
Stockholders in Coldran Aviation will receive six-tenths of a share of Arcadia for each share they hold.
a. How will the earnings per share (EPS) for these stockholders be changed?
b. What will be the effect on the original Arcadia stockholders of changes in the EPS?
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