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The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt Corporation....
|
The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt Corporation. Information about each firm is given here: |
| Jolie | Pitt | |||||
| Price–earnings ratio | 18.2 | 30 | ||||
| Shares outstanding | 78,000 | 300,000 | ||||
| Earnings | $ | 130,000 | $ | 910,000 | ||
|
Jolie's shareholders will receive one share of Pitt stock for every three shares they hold in Jolie. |
| a-1 |
What will the EPS of Pitt be after the merger? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) |
| EPS | $ |
| a-2 |
What will the PE ratio be if the NPV of the acquisition is zero? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| PE |
| b. |
What must Pitt feel is the value of the synergy between these two firms? |
| Synergy value | $ |
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jeff jeffy answered 2 years agoRelated Solutions
The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt Corporation....
The shareholders of Jolie Company have voted in favor of a
buyout offer from Pitt Corporation. Jolie has a price of $20 per
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outstanding. Jolie's shareholders will receive one share of Pitt
stock for every three shares they hold in Jolie. Assume the NPV of
the acquisition is zero. What will the post-merger EPS be for
Pitt?
A) $4 per...
The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt Corporation....
The shareholders of Jolie Company have voted in favor of a
buyout offer from Pitt Corporation. Information about each firm is
given here:
Jolie
Pitt
Price–earnings ratio
9.9
29
Shares outstanding
78,000
290,000
Earnings
$
260,000
$
990,000
Jolie's shareholders will receive one share of Pitt stock for
every three shares they hold in Jolie.
a-1
What will the EPS of Pitt be after the merger? (Do not
round intermediate calculations and round your answer to 3 decimal
places,...
The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt Corporation....
The shareholders of Jolie Company have voted in favor of a
buyout offer from Pitt Corporation. Information about each firm is
given here:
Jolie
Pitt
Price–earnings ratio
13.2
37
Shares outstanding
99,000
370,000
Earnings
$
230,000
$
920,000
Jolie's shareholders will receive one share of Pitt stock for
every three shares they hold in Jolie.
a-1
What will the EPS of Pitt be after the merger? (Do not
round intermediate calculations and round your answer to 3 decimal
places,...
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after the merger? (Do not round intermediate calculations and round
your answer to 3 decimal places, e.g.,...
The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation....
The shareholders of Flannery Company have voted in favor of a
buyout offer from Stultz Corporation. Information about each firm
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Stultz
Price–earnings ratio
12.8
35
Shares outstanding
96,000
350,000
Earnings
$
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$
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Flannery’s shareholders will receive one share of Stultz stock for
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a-1. What will the EPS of Stultz be after the
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The shareholders of Barley Corporation have voted in favor of a buyout offer from Wheat Corporation....
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buyout offer from Wheat Corporation. Information about each firm is
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Barley
Wheat
Price/earnings ratio
13.5
21
Shares outstanding
90,000
210,000
Earnings
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$810,000
Barley shareholders will receive one share of Wheat stock for
every three shares they hold of Barley.
Required
1) What will the EPS of Wheat
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acquisition is 0?
2) What must...
Cerner Corporation announced a first-come, first-serve stock repurchase offer to its shareholders – the company agreed...
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Choose the response that...
Cerner Corporation announced a first-come, first-serve stock repurchase offer to its shareholders – the company agreed...
Cerner Corporation announced a first-come, first-serve stock
repurchase offer to its shareholders – the company agreed to
repurchase 2,653,780 shares of its common stock in exchange for
total consideration of $173,434,000. Cerner had 329,641,500 total
shares outstanding before the redemption.
You acquired 16,482,075 shares of Cerner's stock two years ago
for $20/share. You were the only shareholder to participate in the
repurchase offer and Cerner agreed to redeem the total number of
shares directly from you.
Using the applicable tax...
Cerner Corporation announced a first-come, first-serve stock repurchase offer to its shareholders – the company agreed...
Cerner Corporation announced a first-come, first-serve stock
repurchase offer to its shareholders – the company agreed to
repurchase 2,653,780 shares of its common stock in exchange for
total consideration of $173,434,000. Cerner had 329,641,500 total
shares outstanding before the redemption. You acquired 16,482,075
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