Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 30, 2024

Cour company has earnings per share of $3.67. It has 1.9 million shares outstanding, each of which has a price of $44. You are thinking

Cour company has earnings per share of $3.67. It has 1.9 million shares outstanding, each of which has a price of $44. You are thinking of buying TargetCo, which has earnings per share of $1.84,1.8 million shares outstanding, and a price per share of $23. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. If companies in the same industry as TargetCo are rading at multiples of 15 times earnings, what would be one estimate of an appropriate premium for TargetCo

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

How do the events of normal aging affect life satisfaction?

Answered: 1 week ago

Question

★★★★★

Guas Inc., a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The company is currently preparing its statement of cash flows. The comparative...

Answered: 1 week ago

Question

★★★★★

Scenario: You are a single 3 0 - year - old with a gross annual income of $ 6 4 , 0 0 0 . You have been renting an apartment, but you are tired of the rules set by your landlord. You would like a...

Answered: 1 week ago

Question

★★★★★

The following data is provided for Garcon Company and Pepper Company for the year ended December 31. Finished goods inventory, beginning Work in process inventory, beginning Raw materials inventory,...

Answered: 1 week ago

Question

★★★★★

Refer to Figure 6-9. What is the price buyers will pay after the tax is imposed? Refer to Figure 6-9. What is the amount of the tax per unit imposed in this market?

Answered: 1 week ago

Question

★★★★★

Fullan (2014) mentions a variety of components that are needed for change to occur. What 3 leadership strategies do you feel are foremost in working through the change process and why? Support in the...

Answered: 1 week ago

Question

★★★★★

7. In a large water tank experiment, water waves are gener- ated with straight, parallel wave fronts, 3.00 m apart. The wave fronts pass through two openings 5.00 m apart in a long board. The end of...

Answered: 1 week ago

Question

★★★★★

What makes Shenzhen Development Bank (SDB) an attractive target for investment, and what are the potential sources of value? What are the key risks for investing in SDB, and how can Newbridge...

Answered: 1 week ago

Question

★★★★★

40 kN R1-5: A circular plate of diameter 120 mm and thickness 10 mm is placed over a circular hole of diameter 60 mm in the ground. A circular shaft of diameter 50 mm sits on top of the plate and has...

Answered: 1 week ago

Previous Question Next Question