The shareholders of Bread Company have voted in favor of a buyout offer from Butter Corporation. Information about each firm is given here: BreadButterPrice-earnings ratio1023Shares outstanding75,000260,000Earnings$ 230,000$ 1,040,000 Bread's shareholders will receive one share of Butter stock for every three shares they hold in Bread. a-1.What will the EPS of Butter be after the merger? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a-2.What will the PE ratio be if the NPV of the acquisition is zero? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)b.What must Butter feel is the value of the synergy between these two firms?
The shareholders of Bread Company have voted in favor of a buyout offer from Butter Corporation. Information about each firm is given here:
BreadButterPrice-earnings ratio1023Shares outstanding75,000260,000Earnings$ 230,000$ 1,040,000
Bread's shareholders will receive one share of Butter stock for every three shares they hold in Bread.
a-1.What will the EPS of Butter be after the merger? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
a-2.What will the PE ratio be if the
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