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Why the 3 shares of Nente need to multiply with the EPS of combined company ? Why we dont multiply the no of shares with $5.13 share price in combined company because I thought the shareholders of Nente will become the shareholders of Mije’s which has share price of $5.13
I am not sure which part of the answer you are asking about.
As far as shareholders in Nente are concerned, then for every 3 shares they currently own (worth 3 x $2.90) they will receive 2 shares in Mije which will be worth 2 x $5.13.
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