Is the a good deal for tatts shareholders from eps

Assignment Help Financial Accounting
Reference no: EM132532949

Case study:

On 19 October 2016, Tatts Group Limited (Tatts) and Tabcorp Holdings Limited (Tabcorp) announced a Merger Implementation Deed to combine the two companies and creates a diversified gambling entertainment group with a pro forma enterprise value of AUD11.3 billion. The share prices of Tatts and Tabcorp were $4.16 and $5.06 on 19 October 2016 respectively. The merger was via a scheme of arrangement that offered cash and scrip with Tatts shareholders receiving 0.80 New Tabcorp Shares and 42.5c cash for each Tatts share. Tabcorp, a gambling entertainment company, had an AUD4 billion market capitalisation before the scheme announcement. It operated three core businesses - Wagering and Media, Keno, and Gaming Services - employed over 3,000 people, had revenue of AUD2.15 billion in FY15, and AUD334.5 million net income. Tatts, before merging with Tabcorp, provided gambling services with an AUD5.8 billion market capitalisation. Through its lottery, wagering and gaming operations Tatts reported FY15 revenue of AUD2.9 billion and net income of AUD 233.8 million.

Problem 1: The Tatts shareholders received 0.80 Tabcorp Shares and 42.5c cash for each Tatts share. Is this a good deal for Tatts shareholders from EPS and share price perspectives?

Reference no: EM132532949

Questions Cloud

C Programming : Factory A pays its employees differently depending on his/her position within the organization. Managers receive a fixed weekly salary.
Explain the nature and treatment of sunk costs : Produce calculations which show, on the basis of net present value, whether the new chemical should be produced or not and state your conclusion.
Which evidence could be used to obtain dna : Make a detailed list of evidence that could be collected from the crime scene. Which evidence could be used to obtain DNA? How significant could the CODIS.
Task - Reflecting on the impact of Science : Chemistry Assignment - Emirates National Schools, UAE. Task - Reflecting on the impact of Science. Discuss the disadvantages of magnesium chloride
Is the a good deal for tatts shareholders from eps : The Tatts shareholders received 0.80 Tabcorp Shares and 42.5c cash for each Tatts share. Is this a good deal for Tatts shareholders from EPS
What biographical data about author of article is important : For this assignment, you will be using the CSU Online Library to locate an article that discusses how emotional intelligence, intelligence quotient.
Prepare the journal entries necessary to correct the errors : Prepare the journal entries necessary to correct the above errors. draw up a working on proprietor's profit showing the effect (if any) of correcting
Calculate the annual compound growth rate : Calculate the annual compound growth rate of the house price since the house was sold to Mark and Ann Kington (since 2000) until the price
Describe an appropriate and effective leadership style : Recommends an appropriate and effective leadership style that superiors at the organization could employ to address the problem and best fit the organization.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How should davis record the sale of merchandise costing

Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of merchandise costing $700 for $1000 on account?

  Company is more successful on the basis of profit margin

Key figures for the recent two years of both Polaris and Arctic Cat follow.

  Common stock-retained earnings-dividends-fees earned

Jardine Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; M..

  Classifying balance sheet and income statement accounts

Identifying and Classifying Balance Sheet and Income Statement Accounts Following are selected accounts for Proctor & Gamble. Indicate whether each account appears on the balance sheet (B) or income statement (I). Using the data, compute total assets..

  How much of a home can afford

The current mortgage interest rate is 3.5% for a 30-year conventional mortgage. How much of a home can you afford (before all the closing and settlement costs)?

  Compute the net present value of proposal

Compute the net present value of this proposal. On the merits of your net present value computation, should Cavalier Skilled Nursing Homes invest in this project? Explain your answer.

  Erroneously recorded and accounts payable

Erroneously recorded and accounts payable and Prepare bank reconciliation as of 31 Oct from

  Prepare a schedule for each month showing budgeted cash

Cash-related production costs are budgeted at $5 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred.

  Prepare journal entries to record admission of mood

Prepare journal entries to record admission of Mood. Assuming the bonus is paid to existing partners; Mood invests $45,000 cash

  How much assuming the growth of the economy

1000 per month for the next 25 years. Which is the deal for Rudy , and by how much , assuming the growth of the economy is 2.75% per year ?

  Prepare general journal entry to record estimated vacation

Blackstock Company has a weekly payroll of $18,375 , Prepare a general journal entry to record the estimated vacation pay resulting from the weekly payroll.

  Calculate the cost of capital assuming use of externally

Calculate the cost of capital assuming use of externally generated funds. Calculate the cost of capital assuming use of internally generated funds.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd