Year 3 calculate the additional amount of synergies (beyond the $100 million already included in the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Year 3 calculate the additional amount of synergies (beyond the $100 million already included in the projections) needed to get to zero dilution or accretion if the number of share outstanding after the transaction was 203.4 million and the tax rate is 38.0%. Format a cushion with parentheses such as $12.34 million as (12.34). The additional shares outstanding after the transaction come from a greater number of new shares issued in the acquisition than the 67.1 called for in the original projections. BuyerCo EBIT ValueCo EBIT Synergies Pro Forma Combined EBIT (pre-transaction) Depreciation from Write-Up Amortization from Write-Up Pro Forma Combined EBIT Standalone Net Interest Expense Incremental Net Interest Expense Earnings Before Taxes Income Tax Expense @ 38.0% Pro Forma Combined Net Income BuyerCo Standalone Net Income Standalone Fully Diluted Shares Outstanding Net New Shares Issued in Transaction Pro Forma Fully Diluted Shares Outstanding Projection Period 1 2 3 2013 2014 2015 $1,409.6 $1,494.2 $1,568.9 556.9 590.3 619.8 100.0 100.0 $2,066.4 $2,184.4 4 2016 $1,631.6 $1,680.6 5 2017 644.6 100.0 100.0 $2,288.7 $2,376.2 22.0 22.0 14.7 $1,898.7 22.0 22.0 22.0 14.7 14.7 14.7 14.7 $2,029.8 $2,147.8 $2,252.0 $2,339.5 $2,407.8 142.4 140.6 137.0 133.0 128.9 124.5 66.9 40.2 10.7 6.6 4.2 1.6 $1,689.4 $1,849.0 $2,000.1 $2,112.4 $2,206.5 $2,281.7 642.0 702.6 760.0 802.7 838.5 867.1 $1,047.4 $1,146.4 $1,240.0 $1,309.7 $1,368.0 $1,414.7 $786.8 $841.5 $931.7 Pro forma 2012 $1,317.4 518.0 100.0 $1,935.4 22.0 14.7 $728.5 140.0 67.1 207.1 140.0 67.1 207.1 140.0 67.1 207.1 $890.2 140.0 67.1 207.1 140.0 67.1 207.1 663.9 100.0 $2,444.5 $964.8 140.0 67.1 207.1 Year 3 calculate the additional amount of synergies (beyond the $100 million already included in the projections) needed to get to zero dilution or accretion if the number of share outstanding after the transaction was 203.4 million and the tax rate is 38.0%. Format a cushion with parentheses such as $12.34 million as (12.34). The additional shares outstanding after the transaction come from a greater number of new shares issued in the acquisition than the 67.1 called for in the original projections. BuyerCo EBIT ValueCo EBIT Synergies Pro Forma Combined EBIT (pre-transaction) Depreciation from Write-Up Amortization from Write-Up Pro Forma Combined EBIT Standalone Net Interest Expense Incremental Net Interest Expense Earnings Before Taxes Income Tax Expense @ 38.0% Pro Forma Combined Net Income BuyerCo Standalone Net Income Standalone Fully Diluted Shares Outstanding Net New Shares Issued in Transaction Pro Forma Fully Diluted Shares Outstanding Projection Period 1 2 3 2013 2014 2015 $1,409.6 $1,494.2 $1,568.9 556.9 590.3 619.8 100.0 100.0 $2,066.4 $2,184.4 4 2016 $1,631.6 $1,680.6 5 2017 644.6 100.0 100.0 $2,288.7 $2,376.2 22.0 22.0 14.7 $1,898.7 22.0 22.0 22.0 14.7 14.7 14.7 14.7 $2,029.8 $2,147.8 $2,252.0 $2,339.5 $2,407.8 142.4 140.6 137.0 133.0 128.9 124.5 66.9 40.2 10.7 6.6 4.2 1.6 $1,689.4 $1,849.0 $2,000.1 $2,112.4 $2,206.5 $2,281.7 642.0 702.6 760.0 802.7 838.5 867.1 $1,047.4 $1,146.4 $1,240.0 $1,309.7 $1,368.0 $1,414.7 $786.8 $841.5 $931.7 Pro forma 2012 $1,317.4 518.0 100.0 $1,935.4 22.0 14.7 $728.5 140.0 67.1 207.1 140.0 67.1 207.1 140.0 67.1 207.1 $890.2 140.0 67.1 207.1 140.0 67.1 207.1 663.9 100.0 $2,444.5 $964.8 140.0 67.1 207.1
Expert Answer:
Answer rating: 100% (QA)
To calculate the additional amount of synergies needed in Year 3 to achieve zero dilution or accreti... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
If the end of the cord is pulled downward with speed v C , determine the angular velocities of pulleys A and B and the speed of block D. Assume that the cord does not slip on the pulleys. Given: VC =...
-
The Atlantic division operates as a profit centre. It reports the following for the year. _________________________________________Budgeted Actual...
-
Write a Java program to do the following: Compose a random sequence of 10 case-sensitive letters. Allowable letters are: A B C D E F a b c d e f Assign random values to each letter. Allowable values...
-
A representative volume element (RVE) consisting of a cylindrical isotropic fiber embedded and perfectly bonded in a cylinder of isotropic matrix material is shown in Figure 5.23. If the ends of the...
-
Manuel, Inc. reported net income of $2.5 million in 2014. Depreciation for the year was $160,000, accounts receivable decreased $350,000, and accounts payable decreased $280,000. Compute net cash...
-
From your perspective, what are the three most important things you have learned thus far this semester? Completely discuss and be specific. How are you going to use this new knowledge in your day to...
-
9.Consider the reaction 3NO2(g)+H2O=2HNO3(aq)+NO(g) where Delta H=-137 kJ.How many kilojoules are released when 92.3g of NO2 reacts?
-
A bolted connection is made up of 150 x87.5 x9.5mm Angle bar. The angle is made of A-36 steel and the bolts have a diameter of 20mm A 325 bolts where threads are excluded from shear planes....
-
Cemex has an enviable past, a struggling present and an uncertain future. The company boasts of a century-old history and has weathered many a storm in an unfriendly Mexican business environment....
-
Write a report about cultural difference between Iran and Australia refers to Hofstede's cultural dimensions, and Hall's context model?
-
What are the types of sources that can be used in public speaking, and what instances (e.g., type of speech, target audience) is each source type appropriate,what is the reasoning for using each type?
-
"The Aggregate Model of the Macro Economy," in Economics for Managers . Find two or more recent articles (post April 2020) in the Wall Street Journal or other business publications that describe...
-
Why do you think humans have the tendency to make the "fundamental attribution error
-
The project consist of 3 assignments: 1) Research paper topic - 1 page (due in 12 hours) 2) Annotated Bibliography (due in 2 days) 3) Research Paper - at least 6 pages (due in 6 days). 1)Part one of...
-
Currently, there are five concepts of food stands, including: hot dogs, soft pretzels, turkey legs, sandwich wraps, and funnel cakes. This approach will double the existing number of food stands...
-
In the 2012 tax year, Michelle paid the following amounts relating to her 2010 tax return: Tax deficiency..........................................$5,000 Negligence...
-
Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2012. The truck is not considered a passenger automobile for purposes of the listed property...
-
Frank, age 35, and Joyce, age 34, are married and file a joint income tax return for 2012. Their salaries for the year total $83,000 and they have taxable interest income of $4,000. They have no...
-
What is the concept behind constructing analysis pattern using analogy approach?
-
Analogy approach makes people end up building templates rather than building patterns. Explain.
-
Explain the concept behind constructing analysis pattern by using stability approach.
Study smarter with the SolutionInn App