The shareholders of Tilbury Company have voted in favour of a buyout offer from Dover Corporation. Information about each firm is given here: Price/earnings ratio Shares outstanding Earnings Tilbury 16.00 96,000 $190,000 Dover 33 330,000 $950,000 Tilbury's shareholders will receive one share of Dover stock for every three shares they hold in Tilbury. (Do not leave any empty spaces; input a O wherever it is required.) a-1. What will the EPS of Dover be after the merger? (Round the final answer to 3 decimal places. Omit "$" sign in your response.) EPS $ a-2. What will the P/E ratio be if the NPV of the acquisition is zero? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) PE times b. What must Dover feel is the value of the synergy between these two firms? (Omit "$" sign in your response.) Synergy value $

The shareholders of Tilbury Company have voted in favour of a buyout offer from Dover Corporation. Information about each firm is given here: Price/earnings ratio Shares outstanding Earnings Tilbury 16.00 96,000 $190,000 Dover 33 330,000 $950,000 Tilbury's shareholders will receive one share of Dover stock for every three shares they hold in Tilbury. (Do not leave any empty spaces; input a O wherever it is required.) a-1. What will the EPS of Dover be after the merger? (Round the final answer to 3 decimal places. Omit "$" sign in your response.) EPS $ a-2. What will the P/E ratio be if the NPV of the acquisition is zero? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) PE times b. What must Dover feel is the value of the synergy between these two firms? (Omit "$" sign in your response.) Synergy value $

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 4EP

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