Net Income Shares Outstanding EPS PE Price Big Time 2021 (A) 2022 (F) 62,500,000 75,000,000 10,000,000 10,000,000 Net Income 6.25 B 7.5 8 50.00 $ 60.00 P/E Target Company 2022 (F) 30,000,000 Net Income Consolidated (a) Shares Outstanding (b) EPS (c) PE Price 8 (d) Big Time will puchase the target company at a P/E of 5 times the Target Company's 2022 (F) forecasted net income. Big Time will finance the deal in an all stock acqusition using its stock valued at a PE of 8 (Stock Price @ year end 2021 is $50.00 If Big Time does not make the acquistion, it is forcasted to earn EPS of $7.50 and trade at a P/E of 8, which would equate to $60.00 per share. Should Big Time make the acquision to enhance shareholder value? you calculate the yellow cells (a), (b), (c), (d) correctly yoy will get the correct answer. No-because EPS would grow to $6.00 and at a P/E of 8 the stock would be valued at $48.00 Yes-because EPS would grow to $9.50 and at a P/E of 8 the stock would be valued at $76.00 O Yes because EPS would grow to $8.08 and at a P/E of 8 the stock would be valued at $64.62 Yes - because EPS would grow to $10.50 and at a P/E of 8 the stock would be valued at $84.00 O Not enough information is provided