Question
Using the following information, establish the maximum number of new shares that Boron Inc. could issue to pay for Cobalt Inc if Boron's shareholders will
Using the following information, establish the maximum number of new shares that Boron Inc. could issue to pay for Cobalt Inc if Boron's shareholders will only approve the transaction, where proforma EPS is no lower than 2.05.Assume that the deal was 100% stock financed.Round your answer to 1 decimal place.
Boron Inc.'s net income315.0
Boron Inc.'s outstanding shares143.0
Boron Inc.'s share price64.00
Cobalt Inc.'s net income70.0
Cobalt Inc.'s outstanding shares44.0
Cobalt Inc.'s share price35.00
Minimum proforma EPS2.05
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Organizations Behavior, Structure, Processes
Authors: Gibson, Ivancevich, Donnelly, Konopaske
14th Edition
978-0078112669
