Question
The shareholders of Tilbury Company have voted in favour of a buyout offer from Dover Corporation. Information about each firm is given here: Tilbury Dover
| The shareholders of Tilbury Company have voted in favour of a buyout offer from Dover Corporation. Information about each firm is given here: |
| Tilbury | Dover | |||||
| Price-earnings ratio | 10.00 | 23 | ||||
| Shares outstanding | 75,000 | 260,000 | ||||
| Earnings | $ | 230,000 | $ | 1,040,000 | ||
| Tilbury's shareholders will receive one share of Dover stock for every three shares they hold in Tilbury. (Do not leave any empty spaces; input a 0 wherever it is required.) |
| What will the EPS of Dover be after the merger? (Round the final answer to 3 decimal places.) |
| What will the PE ratio be if the NPV of the acquisition is zero? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) |
| What must Dover feel is the value of the synergy between these two firms? |
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Oil And Gas Industry IRS Audit Technique Guide
Authors: Internal Revenue Service
1st Edition
1304113434, 978-1304113436
