What will the eps of stultz be after the merger

Assignment Help Finance Basics

Reference no: EM131419112

EPS, PE, and Mergers The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation. Information about each firm is given here:

Flannery's shareholders will receive one share of Stultz stock for every three shares they hold in Flannery.

a. What will the EPS of Stultz be after the merger? What will the PE ratio be if the NPV of the acquisition is zero?

b. What must Stultz feel is the value of the synergy between these two firms? Explain how your answer can be reconciled with the decision to go ahead with the takeover?

Reference no: EM131419112

Questions Cloud

Human resource management goals : Write a 1-2-page essay discussing whether you think some human resource management goals, are more important than others. Why or why not? What might happen if a particular manager felt that certain goals were indeed more important than others?

What is the cost of each alternative : The appropriate discount rate for the incremental cash flows is 12 percent. Penn is trying to decide whether it should offer 40 percent of its stock or $87 million in cash to Teller's shareholders.

Why canary party believes that there must be something wrong : As of November 2013, a report states that there have been 31,741 adverse events, 10,849 hospitalizations, and 144 deaths due to HPV vaccines. Explain why The Canary Party believes that there must be something wrong with the vaccine.

Research paper dealing with an internet privacy : Write an research paper dealing with an INTERNET PRIVACY or ETHICS ISSUE that interests you, and has not been resolved through legislation, or other legal means.

What will the eps of stultz be after the merger : What must Stultz feel is the value of the synergy between these two firms? Explain how your answer can be reconciled with the decision to go ahead with the takeover?

What are common sources for counterintelligence explain : What methods and techniques are used in counterintelligence collection? Explain. What are common sources for counterintelligence? Explain.

State two possible explanations for rare rash of injuries : Since the injury to Derrick Rose, at least six NBA players have experienced similar injuries-torn ACLs. State two possible explanations for this rare rash of injuries. Which explanation do you think is more plausible? Why?

Does given explanation agree with yours : "There is a 50% chance of rain today." Contact a weatherperson and ask him or her what this statement means. Does this explanation agree with yours?

What is the author saying about career develop - job hunting : What is the author saying about career develop and job hunting?What tools are available today that can help with a job search?If this was the only resource available as a Career Counselor, how could you use this book to help someone looking for a job..

User Account

All Pages