User Account

All Pages

Compare to? targetco premerger? pe ratio

Assignment Help Finance Basics
Reference no: EM132670137

Your company has earnings per share of $4.33. It has 1.8 million shares? outstanding, each of which has a price of $43. You are thinking of buying? TargetCo, which has earnings per share of $2.17?, 1.9 million shares? outstanding, and a price per share of $26. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction.

a. If you pay no premium to buy? TargetCo, what will your earnings per share be after the? merger?

b. Suppose you offer an exchange ratio such? that, at current? pre-announcement share prices for both? firms, the offer represents a 25% premium to buy TargetCo. What will your earnings per share be after the? merger?

c. What explains the change in earnings per share in part ?(a?)? Are your shareholders any better or worse? off?

d. What will your? price-earnings ratio be after the merger? (if you pay no? premium)? How does this compare to your? P/E ratio before the? merger? How does this compare to? TargetCo's premerger? P/E ratio?

Reference no: EM132670137

Questions Cloud

Single index model for a portfolio construction : What further analysis should undertake to assess the appropriateness of the single index model for a portfolio construction?
What is the cost of capital : What is the cost of capital? How is if evaluated? What other considerations need to be considered in its adoption?
Make a persuasive but concise response to peter chou : Make a persuasive, but concise, response to Peter Chou. Mr Chou is not an accountant so ensure that the explanation is understandable to a non accountant.
Determine the tax free savings account : -Isabelle Salehoun won a lottery!!! She has a choice of two ways to get paid her winnings:
Compare to? targetco premerger? pe ratio : What will your? price-earnings ratio be after the merger? (if you pay no? premium)? How does this compare to your? P/E ratio before the? merger?
What strategies are necessary for that to be realized : Interdisciplinary practice is an imperative for the future of health care. What strategies are necessary for that to be realized? The response must be typed.
What is the actual premium your company will? pay : Your company has earnings per share of $4. It has 1 million shares? outstanding, each of which has a price of $43. You are thinking of buying? TargetCo
Mean and standard deviation of the hpr on stocks : Suppose your expectations regarding the stock price are as follows:
How does the final withholding system work : How does the final withholding system work? Who will pay for the tax deficiency in case the tax withheld is less than the tax required?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd