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Please explain how you get 14.819 ABC Corporation is projected to earn $231.6 million next year, 16.0 million shares outstnding. The firm is planning to
Please explain how you get 14.819
ABC Corporation is projected to earn $231.6 million next year, 16.0 million shares outstnding. The firm is planning to buy DEF Corp for 200 million in cash. ABC will borrow this 200 million at an annual interest rate of 5% and the corporate tax rate is 30%. DEF is projected to earn 12.5 million next year. What is the post-merger EPS of ABC? Selected Answer: 10.24 Correct Answer: 14.819 Answer range +/-0.149 (14.670 - 14.968)Step by Step Solution
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