If Company A buys Company B with the following metrics, what is the pro forma share...
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If Company A buys Company B with the following metrics, what is the pro forma share count? Assume a 25% premium to Company B's stock price and Company A will use 60% Stock consideration. Revenue Net Income Tax Rate Shares Outstanding Share Price Company A 140 45 35.0% 120 10.00 Company B 90 25 30.0% 80 7.00 Estimated pre-tax income acquisition adjustments Assuming pro forma share count of company B is 190, what is the Accretion or Dilution for Company A? 9 If Company A buys Company B with the following metrics, what is the pro forma share count? Assume a 25% premium to Company B's stock price and Company A will use 60% Stock consideration. Revenue Net Income Tax Rate Shares Outstanding Share Price Company A 140 45 35.0% 120 10.00 Company B 90 25 30.0% 80 7.00 Estimated pre-tax income acquisition adjustments Assuming pro forma share count of company B is 190, what is the Accretion or Dilution for Company A? 9
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Answer rating: 100% (QA)
To calculate the pro forma share count of Company B after the acquisition we need to consider the stock consideration used by Company A and the premiu... View the full answer
Related Book For
Entrepreneurial Finance
ISBN: 978-1305968356
6th edition
Authors: J. Chris Leach, Ronald W. Melicher
Posted Date:
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