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Newco Acquirer Target 3500 1050 Net Income 4495 No. of shares 2500 1100 4075 3600 EPS 1.4 0.95 Stock Price 31 36.5 PE 22.1 Ratio

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Newco Acquirer Target 3500 1050 Net Income 4495 No. of shares 2500 1100 4075 3600 EPS 1.4 0.95 Stock Price 31 36.5 PE 22.1 Ratio 38.2 Ratio of Earnings to buyer 30.00% Dollar Value of Bid 44.3 Premium over target 21% Ratio of PE Paid to PE of Buyer 2.1 Answer 2 questions: 1. Is the deal accretive or dilutive? 2. How much in dollar terms, and percentage, is the deal accretive or dilutive

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