KMJ has $7 million in after-tax earnings, 2 million shares outstanding each priced at $24. KMJ is
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Question:
KMJ has $7 million in after-tax earnings, 2 million shares outstanding each priced at $24. KMJ is considering acquiring XLT. XLT has $1.7 million in after-tax earnings, 1.1 million shares outstanding each priced at $16. KMJ believes that the acquisition will yield $600,000 in immediate synergistic earnings. KMJ is planning to bid with an offer price of $19.
Determine the exchange ratio.
0.89
0.79
0.69
0.59
Determine EPS for the combined company.
$5.48
$4.32
$3.24
$2.78
Determine KMJ’s pre-merger EPS.
$3.5
$3
$2.5
$2
Related Book For
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
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