Stock issue merger: A gives B 1 share of A for each of B

scarter

New member
Joined
Aug 29, 2008
Messages
24
Hello again..still working on my homework.
Wondered if anyone could assist with a stock issue merger?

A buys B by issuing additional shares. A has agreed to give B one share of A for each share of B.

A B AB

Net income 300 100 400 (ans)

# of shares 60 20 100 (ans)

Price per Share 90 45 90 (ans)

EPS 5 (ans) 5 (ans) 4 (ans)

PE 18 (ans) 9 (ans) 22.50 (ans)

The (ans) are my fill in the blanks. The 1-A 2-B is confusing me?
Can anyone give a insight? steering towards changing # shares to 50, EPS to 8.00 and P/E 11.25

Thanks
scarter
 
Re: Stock issue merger

I get a headache just looking at your post :shock:

I'm sure it's clear to TK :wink:
 
Re: Stock issue merger Redo on alignment

A buys B by issuing additional shares. A has agreed to give B one share of A for each share of B.

A B AB OR ans
Net income $300.00 $100.00 $400 (ans) $400
# of shares 60 20 100(ans) 50 by dividing 60/2 adding 20
Price per Share $90.00 $45.00 $90.00 $90.00
EPS $5 (ans) $5(ans) $4(ans) $8.00
P/E 18(ans) 9 (ans) 22.50(ans 11.25

The (ans) are my fill in the blanks. The 1-A share 2-B share is confusing me?

Hopefully this works. I lined it up again

scarter
 
Re: Stock issue merger

I appreciate Dennis' confidence, but I think I have no clue on this one. The notation may be part of the problem - either it's funky or I just don't get it.
 
Re: Stock issue merger

Thanks..

It isn't posting correctly.
It is a stock merger with Column A Column B and then the merger is AB with a
stock of 1 Share of A to 2 Shares of B It is a fill in the blank HW and where is says (ans)
that is my answer. Sorry to be confusing just didn't line up the coulumn correctly.

scarter :wink:
 
scarter said:
It isn't posting correctly.
The forum is not "broken"; you are trying to use tabs and / or spaces for formatting, which the forum script strips out. Instead, try using "code" tags to "force" your desired spacing.

Eliz.
 
Re: Stock issue merger Thanks Elizabeth trying it

A buys B by issuing additional shares. A has agreed to give B one share of A for each share of B.

[A] [AB] [ORcould be]

Net income [300 ] [100] [400 ans] [400ans]

# of shares [60] [20] [100 ans] [50 ans]

Price per Share [90] [45] [90ans] [90 ans]

EPS [5 ans] [5ans] [4ans] [8.00ans]

PE [18ans] [9 ans] [22.4ans] [11.25 ans]

The (ans) are my fill in the blanks. The 1-A 2-B is confusing me?
Can anyone give a insight? steering towards changing # shares to 50, EPS to 8.00 and P/E 11.25

Thanks
scarter
 
Re: Stock issue merger

Eliz,

I tired to do what you explained and it didn't work.
Thanks for trying to assist>

scarter
 
Re: Stock issue merger

Code:
                  [A]     [B]      [AB]    [OR could be]

Net income      [300 ]  [100]   [400 ans]   [400 ans]

# of shares      [60]    [20]   [100 ans]   [50 ans]

Price per Share  [90]    [45]    [90 ans]   [90 ans]

EPS             [5 ans] [5 ans]   [4 ans]   [8.00 ans]

PE              [18ans] [9 ans] [22.4 ans] [11.25 ans]

It's a lovely grid. What does it mean?
 
Re: Stock issue merger

Wow that was good.

It is the impact of a Stock for Stock merger:
Discusses the way a firm plans to aquire another firm in a 2 for 1 stock exchange
and how the value of P/E ratio changes, stock price changes.
If it was a 2 shares A for 1 Share of B I would have a better understanding.

IE net income would $400
# of shares 60 * 20(2) = 100 IE 20 shares of B *2

Price per share is net income / # of shares or given in this question

Price/ Earnings Ratio is Price per share/EPS there fore the higher the Price earnings the higher investors believe that the firm has good growth opportunities or its earning are relativiely safe.

So the conflict is that every question he has given us has been 2 Shares of A for each share of B.
This on is opposite and the higher value company doesn't buy a lower value company in that frame of business.
Hope this helps.

scarter
 
Re: Stock issue merger

tkhunny said:
Code:
                  [A]     [B]      [AB]    [OR could be]

Net income      [300 ]  [100]   [400 ans]   [400 ans]

TK, your should be 1 spot to the left :roll:
 
Re: Stock issue merger

mmm4444bot said:
How many pixels are there in one spot?

I like cryptic clues:

Odd piles contain 10 dots (6)

answer: pixels
dots = pixels
piXels : piels = odd piles; X = 10
 
Re: Stock issue merger

You guys are funny....glad you enjoy helping other people.
 
Re: Stock issue merger

Sadly, we are able to entertain ourselves when we don't get it. I wish I understood the question.
 
Re: Stock issue merger

scarter said:
... It is the impact of a Stock for Stock merger ...

This is the point where I know that I'm lost ... heh, heh, ... I don't do stocks.

What is sad to me is the inability of people to focus. I have no idea why the original poster abandoned this discussion, if they have.

TK posted a clear statement pertaining to the notation, later followed by a clear question about the data, but the original poster continued posting the same notation twice, as if pretty-print might clear things up, and to date has not responded to TK's question; there is no explanation of notation or information.

At the end of the day, this thread may turn out to have been doomed from the start simply because there was never any real need to begin with. :|

~ Mark

PS: Denis, I will repost the cryptic clues on the oddities board later when I desire to continue the entertainment (while business is slow).
 
Re: Stock issue merger

mmm4444bot said:
PS: Denis, I will repost the cryptic clues on the oddities board later when I desire to continue the entertainment (while business is slow).
Hey Mark, what/where's the "oddities board"?
Which cryptic clue(s) ? I only posted 1 here.

If you need more, here's one of mine (love making 'em up):
Popeye, a cartoon character (7)

Btw, if you want to continue with this (like asking questions et al),
methinks we'd better switch to PM's ... else Ted will kick us out...
 
Re: Stock issue merger

Denis said:
what/where's the "oddities board"?

Which cryptic clue(s) ? I only posted 1 here.

methinks we'd better switch to PM's ... else Ted will kick us out...

Hey there, Denis:

I'm referring to the board titled, "Math Odds & Ends".

You used the plural form of "clue" when you posted the information, so I'm using the plural form of "clue". At this point, I'm still trying to figure out the information; after I understand it, I may view some of the information as non-clues.

I'd rather not use private messages; instead, I will move the cryptology-based discussion in this thread to the Math Odds & Ends board now, but it will be a couple of days before I can get back to it because I've put too much on my plate ...

I'm reviewing some remedial math after a four-year sabbatical
I agreed to assist two instructors Fall quarter
I'm working my way through 1008 pages of a TI-89 user guide
I'm trying to learn the ins and outs of TEX
I'm trying to brush up on my Maple skills
I'm trying to learn new PC software that parses TI-89, TEX, and Maple code (but, the documentation is in French! :shock: )
I'm investigating software that allows me to create animated .GIF files for illustrating mathematical concepts

I really do look forward to thinking more about the cryptic info. I'm reminded of a confounded contraption to which I was subjected at a psycho-neural exam, and with which I totally failed. Hopefully, I can get somewhat even. :D
 
Top