Question Group 2 | Why do you think Bayer paid so much for Monsanto? Follow up on the roundup Note: Answer this question by answering the questions below.

1. What did Monsanto have to say about the potential liability from the Roundup lawsuits outstanding? Note: To answer this question Read Note 24 Please explain in your own words (10 points)

   1. Monsanto states their involvement in legal matters due to the potential liability from Roundup lawsuits. Monsanto has set up payment disbursements till 2022.

2. After Monsanto was purchased by Bayer AG (a German company) the results seem more dismal. What happened to Bayer EPS from 2017 to 2018? (5 points)

   1. According to Bayers 2018 annual report, Bayers EPS increased from 6.74 in 2017 to 5.94.

3. What does Bayer have to say about the Roundup litigation (see pages 100, 187, 230 and 250 of the Note: See the Annual Reports for Monsanto and Bayer (5 points)

4. People suing Bayer for damages related to Roundup will look at the value of Monsanto and Bayer. If you were the Forensic Accountant, how would you value Bayer as of February 3, 2020? Note: Explain your answer and show your calculations. (15 points)