Question
As an analyst, you need to calculate the maximum number of acquirer shares that can be offered for each target share without diluting the forecasted
As an analyst, you need to calculate the maximum number of acquirer shares that can be offered for each target share without diluting the forecasted acquirer's EPS. The tax rate is 20%. No debt is issued for this merger.
| Acquirer | Target | |
| NI (millions) | 103 | 72 |
| Out Shrs | 19 | 17 |
All numbers are in millions. Note you will have to compute EPS before answering this question.
Answer to one decimal place, ##.#
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
