Question: Give me a way to solve this using formulas step by step, Thank you! 9. Your company has earnings per share of $4. It has

Give me a way to solve this using formulas step by

Give me a way to solve this using formulas step by step, Thank you!

9. Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You are thinking of buying TargetCo, which has earnings per share of $2,1 million shares outstanding, and a price per share of $25. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. If you pay no premium to buy TargetCe, what will be your earnings per share after the merger? a. 3.69 b. 4.55 c. 2.63 d. 4.80 e. 3.25

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Give me a way to solve this using formulas in steps. Thank you! 8. AMS Company has unexpectedly generated a one-time extra $5 million in cash-flow this year. After announcing the extra cash flow, AMS...

Solve this using formulas step by step, Thank you! 11. Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You are thinking of buying...

Chapter 5 FORECASTING FINANCIAL STATEMENTS Homework Assignment: THE CORTINO CORPORATION Forecast the income statement and balance sheet for 20X2 based on the following data for 20X1 and expectations...

use the information in the pictures to determine the Income Statement and Balance Sheet for Doofenshmirtz Evil Inc. for the period Dec.31 2020 and as of Dec. 31, 2020. the first 6 pictures are...

I need help with these business mathematics questions. I have provided each page number and what questions need answered on each screenshot. Please write the page number and what question the answer...

Please help me, I can't do this...Thank you! FIN 320 Project Two Milestone Guidelines and Rubric Overview To prepare for your report in Project Two, you must calculate the financial ratios needed to...

4. Evaluate Joanna Cohen's estimation of cost of capital: a. Is it appropriate to use a single cost of capital for all Nike's businesses? Explain. b. How does Joanna Cohen calculate the weights for...

1. Evaluate Joanna Cohens estimation of cost of capital: a. Is it appropriate to use a single cost of capital for all Nikes businesses? Explain. b. How does Joanna Cohen calculate the weights for...

Two men, each of mass m, stand on the edge of a stationary buggy of mass M. Assuming the friction to be negligible, find the velocity of the buggy after both men jump off with the same horizontal...

DepreciationStrike, Units-of-Production, Obsolescence Presented below and are three different and unrelated situations involving depreciation accounting. Answer the question(s) at the end of each...

anti - malware software installed on systems that aim to detect malware infections on a system is called? data loss and prevention ( DLP ) , Antivirus, Tactics techniques and procedures, or onion...

The balance sheet for a proposed project reveals a fixed capital investment of $350M. Annual total project expenses are estimated to be $150M and sales income as $240 M. Calculate annual and...

If the existing information is not highly reliable, consider additional research, such as the following: Review of organizational literature/information Review of other published information...

What problem(s) does this public have related to this issue?

Who is your key public?