Using the Dilution method, please assist in figuring out what Bayou's market value is? please assist with step by step.

You are an analyst in the merger and acquisition staff of Plateau Petroleum. Your firm has been courting Bayou Pipeline, Inc. for months, attempting a friendly merger. All possibilities of a friendly takeover ended recently when management of Bayou stormed out of negotiations. You have been asked to determine the maximum amount that Plateau can pay for Bayou in a hostile takeover without diluting Plateau's EPS. Actual Data (20XX) EPS Shares Plateau 7.50 8,250,000 13 Bayou Combined 3.80 N/A 1,550,000 N/A N/A P/E Market Value Projected Data (20XY). EPS Shares P/E Enhanced EPS 8.25 8,250,000 13 4.15 1,550,000 13 5.15 13 Earnings of Plateau Petroleum. Your firm has been courting Dilution Method merger. All possibilities of a friendly takeover ended 1. Project the acquirer's net income for the negotiations. You have been asked to determine the next year, without the merger. hostile takeover without diluting Plateau's EPS. 2. Project the target's net income for the next year with the merger, including synergies. 3. Add the projected net income with and without the merger. 4. Calculate the acquirer's projected EPS, without the merger. Combined N/A N/A N/A 5. Divide the combined earnings (Step 3) by the acquirer's projected EPS (Step 4). 6. Subtract the number of shares that the) acquirer has outstanding from the number calculated in Step 5. 13 7. Multiply the number of shares from Step 6 by the current share price. Based on the information below, what is Bayou's market value? Submit Actual Data (20XX) EPS Plateau 7.50 8,250,000 13 Bayou 3.80 1,550,000 Combined N/A N/A N/A Shares P/E Market Value Incorrect. Bayou's market value is the product of its share price and shares outstanding. Share price is equal to EPS times P/E. So Bayou's market value is: $3.80 x 8 x 1,550,000 = $47,120,000 Click next to continue. Projected Data (20XY) EPS Shares P/E Enhanced EPS szopo uspoo B 8.25 8,250,000 13 4.15 1,550,000 13 5.15 13 Earnings