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 NI35
Acquirer shrs5
Target NI95
Target shrs7
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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Management Science The Art Of Modeling With Spreadsheets
Authors: Stephen G. Powell, Kenneth R. Baker
3rd Edition
0470530677, 978-0470530672
