Determine eps for the combined company

Assignment Help Financial Management

Reference no: EM131334733

Consider given problem again. Assume that there are immediate synergistic benefits of $4 million if Apex and Pinnacle merge. Answer parts a, b, and c of problem 8 under these conditions.

Problem
Apex Corporation is considering the purchase of Pinnacle Company in a stock-forstock exchange. Selected data on the two companies are shown in the following table:

1465_Table 4.jpg

Assume that there are no synergistic benefits as the result of the merger. Determine EPS for the combined company if Apex offers a
a. 20 percent premium for Pinnacle

b. 40 percent premium for Pinnacle

c. 50 percent premium for Pinnacle.

Reference no: EM131334733

Questions Cloud

Decreasing marginal product of labor : 1. Which of the two columns in the table above represent the labor demand schedule? 2. What economic law accounts for the decreasing marginal product of labor (MP)?

What should bob do in the current situation : IT441- He has also been notified (rather indirectly) that if he continues to persist in delaying the system, he will be fired. What should Bob do in the current situation?

Identify the topic you selected for your evaluation project : Post the two topics you identified as most relevant to your organization or to you personally, and explain why you selected those topics. Identify the topic you selected for your Evaluation Project, and propose three potential evaluation goals for ..

Which influencing tactics do you tend to use most and least : Which influencing tactics do you tend to use most and least? How will you change and develop the ability to influence using influencing tactics?

Determine eps for the combined company : Determine EPS for the combined company if Apex offers a 20 percent premium for Pinnacle, 40 percent premium for Pinnacle and 50 percent premium for Pinnacle.

How will you change and develop your political skills : How would you rate your political skills, and which political behavior do you use most often?

Characteristics of a monopolistically competition industry : Describe the characteristics of a monopolistically competition industry. Describe why monopolistic- ally competition firms find it important to establish brand loyalty for their product and service? How do try to create brand loyalty? Give Two exa..

Essay about dan walnycky at and t telephone lines went dead : Essay about this topic: Dan Walnycky: (1990) AT&T telephone lines went dead across the country for 9 hours. Include some sort of graphical documentation and a bibliography that lists all sources (online or not).

Discuss economic theory related to the quote : Discuss economic theory related to the quote above. Be sure to include a definition of exports and the way in which exports are counted in the measurement of Gross Domestic Product (GDP) within your discussion.

User Account

All Pages