The shareholders of jolie company have voted in favor of a


The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt Corporation. Information about each firm is given here: Jolie Pitt Price–earnings ratio 9.9 30 Shares outstanding 99,000 300,000 Earnings $ 250,000 $ 750,000 Jolie's shareholders will receive one share of Pitt stock for every three shares they hold in Jolie. a-1 What will the EPS of Pitt be after the merger? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) EPS $ a-2 What will the PE ratio be if the NPV of the acquisition is zero? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) PE b. What must Pitt feel is the value of the synergy between these two firms? Synergy value $

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The shareholders of jolie company have voted in favor of a
Reference No:- TGS02157157

Expected delivery within 24 Hours