I. Introduction (Objective) It is common in Mergers & Acquisitions to create pro forma combined financial statements (and resulting key ratios) for a potential merger or acquisition scenario. The output can vary, but the general exercise is referred to as a Combination Analysis (or sometimes a Contribution Analysis). The key takeaways from the Combination Analysis can include combined earnings per share (and whether the deal is accretive or not), synergies required to achieve breakeven earnings per share (if initially dilutive), and implied pro forma credit rating. TheabilitytosuccessfullycompleteaCombinationAnalysisiscriticalduetothe importanceofa firmsEPSandtargetedcapitalstructure/creditrating.Youwillcomplete anabbreviated Combination Analysis to demonstrate your understanding of the key formulas and financial statement relationships inherent in the M&A decision-making process.

II. Assignment Requirements Complete the combination analysis and questions found in the Excel file located in your assignment instructions. Please refer to chapters 16, 17, and 21 for more information on Combination Analyses.

III. AssignmentFormat You will find an Excel file in your assignment instructions. Please complete the activity