Question
A-co will consider acquire of T-co. Relevant financial informatio are given below: A-co T-co EAT 8,000 3,000 Outstanding number of shares 4,000 3,000 P/E Ratio
A-co will consider acquire of T-co. Relevant financial informatio are given below:
| A-co | T-co | |
| EAT | 8,000 | 3,000 |
| Outstanding number of shares | 4,000 | 3,000 |
| P/E Ratio | 10 | 12 |
A-co is contemplating to offer 25% premium over market price of T-co's share.
a. Calculate the exchange ratio
b. Calculate EPS of the New Co on merger
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Sports Finance And Management Real Estate Entertainment And The Remaking Of The Business
Authors: Jason A. Winfree, Mark S. Rosentraub, Brian M Mills
1st Edition
1439844712, 9781439844717
