World Enterprises is determined to report earnings per share of $3.20. It therefore acquires the Wheelrim...

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World Enterprises is determined to report earnings per share of$3.20. It therefore acquires the Wheelrim and Axle Company. Thereare no gains from merging. In exchange for Wheelrim and Axleshares, World Enterprises issues just enough of its own shares toensure its $3.20 earnings per share objective.
a. Complete the table below for the mergedfirm. (Do not round intermediate calculations. Round "Priceper share" and "Price-earnings ratio" to 2 decimal places and otheranswers to the nearest whole number.)
World Enterprises Wheelrim and Axle Merged Firm
Earnings per share $2.00 $3.00 $3.20
Price per share $30 $15
Price-earnings ratio 15 5
Number of shares 180,000 280,000
Total earnings $360,000 $840,000
Total market value $5,400,000 $4,200,000
b. How many shares of World Enterprises areexchanged for each share of Wheelrim and Axle?
Shares exchanged?
c. What is the cost of the merger to WorldEnterprises?
Merger Cost?
d. What is the change in the total value of theWorld Enterprises shares that were outstanding before themerger?
The market value of theoriginal World shareholders' shares by

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World Enterprises is determined to report earnings per share of$3.20. It therefore acquires the Wheelrim and Axle Company. Thereare no gains from merging. In exchange for Wheelrim and Axleshares, World Enterprises issues just enough of its own shares toensure its $3.20 earnings per share objective.a. Complete the table below for the mergedfirm. (Do not round intermediate calculations. Round "Priceper share" and "Price-earnings ratio" to 2 decimal places and otheranswers to the nearest whole number.)World EnterprisesWheelrim and AxleMerged FirmEarnings per share$2.00$3.00$3.20Price per share$30$15Price-earnings ratio155Number of shares180,000280,000Total earnings$360,000$840,000Total market value$5,400,000$4,200,000b. How many shares of World Enterprises areexchanged for each share of Wheelrim and Axle?Shares exchanged?c. What is the cost of the merger to WorldEnterprises?Merger Cost?d. What is the change in the total value of theWorld Enterprises shares that were outstanding before themerger?The market value of theoriginal World shareholders' sharesby

World Enterprises	Wheelrim and Axle	Merged Firm
Earnings per share	$2.00	$3.00	$3.20
Price per share	$30	$15
Price-earnings ratio	15	5
Number of shares	180,000	280,000
Total earnings	$360,000	$840,000
Total market value	$5,400,000	$4,200,000