Fill this table.

							25% Debt
							Pro-Forma
	Target		Buyer		NewCo
	Book Value	Mkt Value		Book Value	Mkt Value
	12/31/18	12/31/18		12/31/18	12/31/18		12/31/18
Current Assets	50,000	50,000		400,000	500,000
PP&E	2,000,000	2,500,000		9,000,000	8,000,000
Goodwill	-	-		-	-
Other Assets	200,000	200,000		800,000	750,000
Total Assets	2,250,000	2,750,000		10,200,000	9,250,000
Accts Payable	50,000	50,000		50,000	50,000
Long-Term Debt	1,000,000	1,300,000		4,000,000	4,100,000
Equity	1,200,000	1,400,000		6,150,000	5,100,000
Total Liabilities and Equity	2,250,000	2,750,000		10,200,000	9,250,000
2019E EPS		1.00			3.00
Shares Outst.		100,000			75,000
Price/Share		25.00			25.00
P/E Multiple		25x			8.33x
Debt/Capital	45.5%			39.4%
Interest Rate on Debt pre-tax	8.0%
Percent Debt	25.0%
Tax Rate for both	20.0%

PLEASE SHOW WORK (EXCEL FORMULA)

Answer these questions:

1. Assume Buyer is acquiring Target, financed with 25% debt and 75% stock. The stock prices shown above
are the prices involved (i.e., the buyer's stock at time of deal is $25 and they are paying $25/share for the target).
The deal is closing on 12/31/18. Interest rate and tax rate assumptions are shown above.
Shares outstanding and 2019 Estimated standalone EPS are given above.
Calculate the 2019E EPS of the combined entity. Assume zero synergies.
					EPS	=
2. What amount of pre-tax synergies are required to make the combined
EPS break-even? If the deal is already break-even or accretive, you can answer "n/a."
				Pre-Tax to Breakeven =
3. Fill in the combined pro-forma Balance sheet at 12/31/18 for the new Buyer company
Include the new number of Buyer shares outstanding after the close.			See Above Red Boxes within H9-H29 range
4. Fill in the boxes for the cash portion per share and the exchange ratio of the deal (red boxes):		You would say this deal is structured as:
5. What is the Pro Forma Debt/Capitalization Ratio for NewCo?
6. What percentage of NewCo does Buyer control?