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The shareholders of Bread Company have voted in favor of a buyout offer from Butter Corporation. Information about each firm is given here: Price-earnings ratio
The shareholders of Bread Company have voted in favor of a buyout offer from Butter Corporation. Information about each firm is given here: Price-earnings ratio Shares outstanding Earnings Bread Butter 13.2 34 99.000 340.000 $200,000 $800.000 Bread's shareholders will receive one share of Butter stock for every three shares they hold in Bread. 6.1. What will the EPS of Butter be after the merger? (Do not round Intermediate calculations and round your answer to 3 decimal places, e.g., 32.181.) a-2. What will the PE ratio be if the NPV of the acquisition is zero? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.10.) b. What must Butter feel is the value of the synergy between these two firms? a-1. EPS 2-2 PE b. Syne This is a numeric cell, so please enter numbers only
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