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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: BreadButterPrice-earnings ratio5.26Shares
The shareholders of Bread Company have voted in favor of a buyout offer from Butter Corporation. Information about each firm is given here:
BreadButterPrice-earnings ratio5.26Shares outstanding45,000Earnings$ 230,000Bread's shareholders will receive one share of Butter stock for every three shares they hold in Bread. What will the EPS of Butter be after the merger? What will the PE ratio be if the NPV of the acquisition is zero?
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