Earnings per Share. Shim Company wishes to acquire Siegel Company by exchanging 0.8 share of its stock for each share of Siegel. Financial data follow:
Earnings per share
Shim issues its shares to make the acquisition. (a) How many shares must Shim issue in the acquisition? (b) Assuming the net income of each firm remains
the same what is the earnings per share after the acquisition? (c) What is the amount earned per share on the original shares of Siegel stock? (d ) What
is the amount earned per share on the original shares of Shim stock?