Question
will definetely upvote The shareholders of Tilbury Company have voted in favour of a buyout offer from Dover Corporation. Information about each firm is given
will definetely upvote
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 | 9.90 | 30 | ||||
Shares outstanding | 99,000 | 300,000 | ||||
Earnings | $ | 250,000 | $ | 750,000 | ||
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. Omit $ sign in your response.)
EPS $
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. )
PE times
b. What must Dover feel is the value of the synergy between these two firms? (Omit $ sign in your response.)
Synergy value $
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