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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....
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the acquisition is zero. What will the post-merger EPS be for
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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
$
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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
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Shares outstanding
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21
Shares outstanding
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210,000
Earnings
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Required
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Cerner Corporation announced a first-come, first-serve stock repurchase offer to its shareholders – the company agreed...
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repurchase 2,653,780 shares of its common stock in exchange for
total consideration of $173,434,000. Cerner had 329,641,500 total
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You acquired 16,482,075 shares of Cerner's stock two years ago
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Cerner Corporation announced a first-come, first-serve stock
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repurchase 2,653,780 shares of its common stock in exchange for
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