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Firm B is The Bidding Firm and Firm T is the Target Firm.Theirfinancial data is as follows:itemFirm BFirm TTotal earning (E)US $10 millionUS $5 MillionNumber of outstanding shares(s)5 Million5 MillionEarnings per share (EPS)US$2US$1P/E ratio64Market Price per share (P)US$12US$4(A) calculate the weighted average weighted average P/Efor the combined Firm BT.(B)Calculate the Maxium number of shares firm B will bewilling to offer to the sockholders of firm T at the P/E calculatedin Part (A) above.What will be the minimum number of sharesacceptable to the stockholders of firm T at the same P/Elevel?(C) If EPS was the criterion to determine the exchangeratio,how many shares firm B would offer to stockholders of firmT?in case,Market price per share was used as a basis to determinethe exchange ratio,how much would your result change?which one doyou think would be a better criterion for exchange ratedetermination?why?