Assume the following financial data for Noble Corp and Barnes Corp

Assume the following financial data for Noble Corp and Barnes Corp
NOBLE BARNES
Total earning: $1,200,000 $3,600,000
stock outstanding: 600,000 2,400,000
Earning per share $2.00 $1.50
P/E ratio 24X 32X
Market price P/S $48 $48

a. If all the shares of Noble Corp are exchanged for those of Barnes on a share for share basis, what will postmerger earning per share for Barnes Enterprise?

b. Explain why the earnings per share of Barnes Ent changed.

c. Can we necessarily assume that Barnes is better off after the merger?

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