Question: i need help with this question asap please with all PARTS P28-9 (similar to) Your company has eamings per share of $3.52. It has 1.6
P28-9 (similar to) Your company has eamings per share of $3.52. It has 1.6 illion shares outstanding, each of which has a price of $35. You are thinking of buying TargetCo, which has eamings per share of $1.76, 1.1 million shares outstanding, and a price per share of $28. You will pay for TargetCo by issuing new shares. There are no expected from the t a. If you pay no premium to b. Suppose you o an exchange ratio such that, at current pre-announcement share prices for both firms the offer represents a 20% premium to buy Tar etCo. what will your e c. What explains the change in earnings per share in part (a)? Are your shareholders any better or worse off? d. What will your price-earnings ratio be after the merger (if you pay no premium)? How does this compare to your P/E ratio ? How does this compare to The EPS after the merger is (Round to the nearest cent)
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