Question
The shareholders of Tatti Company have voted in favour of a buyout offer from Lassan Corporation. Information about each firm is given here: TilburyDover Price/earnings
The shareholders of Tatti Company have voted in favour of a buyout offer from Lassan Corporation. Information about each firm is given here:
TilburyDover Price/earnings ratio 13.80 22 Shares outstanding 90,000 220,000 Earnings$200,000 $920,000Tilbury's shareholders will receive one share of Dover stock for every three shares they hold in Tilbury.
a-1. What will the EPS of Dover be after the merger? (Round the final answer to 3 decimal places.
a-2. What will the P/E ratio be if the NPV of the acquisition is zero? (Do not round intermediate calculations. Round the final answer to 2 decimal places. )
b. What must Dover feel is the value of the synergy between these two firms?
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Analysis of Tilbury and Dover Merger a1 EPS of Dover after the Merger Combined Shares After the merg...
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Fundamentals of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield
8th Canadian Edition
978-0071051606
