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KMJ has $7 million in after-tax earnings, 2 million shares outstanding each priced at $24. KMJ is considering acquiring XLT. XLT has $1.7 million in
KMJ has $7 million in after-tax earnings, 2 million shares outstanding each priced at $24. KMJ is considering acquiring XLT. XLT has $1.7 million in after-tax earnings, 1.1 million shares outstanding each priced at $16. KMJ believes that the acquisition will yield $600,000 in immediate synergistic earnings. KMJ is planning to bid with an offer price of $19. Determine the percentage of dilution (percentage decrease) in KMJs EPS as a result of the acquisition.
-1.17%
-2.98%
-5.47%
-7.43%
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