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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 13.5 Price-earnings ratio Shares outstanding Earnings 21 90,000 210,000 $180,000 $810,000 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.) a-1 What will the EPS of Dover be after the merger? (Round the final answer to 3 decimal places.) EPS a-2 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.) PE times b. What must Dover feel is the value of the synergy between these two firms? Synergy value
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