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Business, 13.08.2021 15:20 natannale

AcquirerCo purchases TargetCo by issuing $40,000,000 in debt at a 7% rate. TargetCo has $4,700,000 in EBIT. AcquirerCo can recognize $2,500,000 in synergies and has a 40% marginal tax rate. An analyst covering AcquirerCo estimates its standalone earnings per share at $3.00 per share on 20,000,000 shares. What are AcquirerCo's pro forma earnings per share after the transaction

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AcquirerCo purchases TargetCo by issuing $40,000,000 in debt at a 7% rate. TargetCo has $4,700,000 i...
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