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World Enterprises is determined to report earnings per share of $2.19. It therefore acquires the Wheelrim and Axle Company. You are given the following facts: Earnings per share Price per share Price earnings ratio Number of shares Total earnings Total market value World Enterprises $ $ 1.85 37.00 20 100,000 185,000 $3,700,000 $ Wheelrim and Axle 2.35 23.50 10 130,000 305,500 $3,055,000 Merged Firm $2.19 222 22 ? ? ? ? ? There are no gains from merging. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure its $2.19 earnings per share objective. Required: a. Complete the below table for the merged firm. b. How many shares of World Enterprises are exchanged for each share of Wheelrim and Axle? c. What is the cost of the merger to World Enterprises? d. What is the change in the total market value of the World Enterprises shares that were outstanding before the merger?

World Enterprises is determined to report earnings per share of $2.19. It therefore acquires the Wheelrim and Axle Company. You are given the following facts: There are no gains from merging. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure its $2.19 earnings per share objective. Required: a. Complete the below table for the merged firm. b. How many shares of World Enterprises are exchanged for each share of Wryelrim and Axle? c. What is the cost of the merger to World Enterprises? d. What is the change in the total market value of the World Enterprises shares that were outstanding before the merger? Complete the below table for the merged firm. (Do not round intermedi places, "Price-earnings ratio" to 1 decimal place, and the other final ans Complete this question by entering your answers in the tabs below. How many shares of World Enterprises are exchanged for each share of Wheelrim and Axle? calculations. Round your answer to 2 decimal places.) What is the cost of the merger to World Enterprises? (Enter your answer as a positive value. Do not calculations. Round your answer to the nearest whole number.) What is the change in the total market value of the World Enterprises shares that were outstanding be negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round y nearest whole number.)

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