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What is the 2017 accretion/dilution in Glocabe's GAAP EPS assuming the acquisition took place on January 1, 2017?

What is the 2017 accretion/dilution in Glocabe's GAAP EPS assuming the acquisition took place on January 1, 2017?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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It is January 1, 2017. Glocabe Networks is contemplating the acquisition of competitor Jupiter Networks by issuing stock to purchase target shares (stock purchase). The following details are available: January 1, 2017 Current share price Offer price Diluted shares outstanding (mm) 4.5 2017 GAAP earnings per share (EPS) forecast $3.12 $0.19 $0.96 Glocabe and Jupiter's diluted shares outstanding have not changed since January 1, 2016. You may assume the companies have the same tax rate. What is the 2017 accretion/dilution in Glocabe's GAAP EPS assuming the acquisition took place on January 1, 2017? - $0.43 O -$1.54 Glocabe Jupiter $30.00 $50.00 $60.00 -$0.24 2.2 $4.51
Transcribed Image Text:It is January 1, 2017. Glocabe Networks is contemplating the acquisition of competitor Jupiter Networks by issuing stock to purchase target shares (stock purchase). The following details are available: January 1, 2017 Current share price Offer price Diluted shares outstanding (mm) 4.5 2017 GAAP earnings per share (EPS) forecast $3.12 $0.19 $0.96 Glocabe and Jupiter's diluted shares outstanding have not changed since January 1, 2016. You may assume the companies have the same tax rate. What is the 2017 accretion/dilution in Glocabe's GAAP EPS assuming the acquisition took place on January 1, 2017? - $0.43 O -$1.54 Glocabe Jupiter $30.00 $50.00 $60.00 -$0.24 2.2 $4.51
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