Professor Elam

Monday Nov 17 2014

Liam Denning provides a good example of financial analysis in today's WSJ.

Pro Quest Link to Article is Here

To access Pro Qust Wall Street

Library

On Line Database

A-Z

Choose W for Wall Street Journal Pro Quest

Input article name

He examines the potential outcome of  Halliburton taking over Gaker Hughes. 

I don't know if this link works without a subscription but I will locate the same article on the WSJ database at school and follow up with another link. 

We are studying the consturction of eraning per share in 3312 and the income statement and balance sheet in 3310. This article demonstrates how eachis used in financial analysis. 

The question here is, will the new company be worth more than the old to the shareholders?

BREAKING NEWS

AS I write HAL will buy BHI for 78.62 a share with 

1.12 HAL shares and $19 cash for each BHI share

THat is a 31% premium over where BHI was trading. That sort of premium is necessary to get the deal done.