Croatia Inc. is in the process of acquiring Vistara Inc. on a share exchange basis. The information related to the two companies is provided below. Croatia Inc. $14,000,000 1,500,000 Vistara Inc. $6,000,000 1,600,000 $5 10 Profit after tax Shares outstanding Earnings per Share PE Ratio As an analyst of Croatia Inc., you are required to calculate the following: Pre-Merger Market Value per Share of both companies. The maximum share exchange ratio Croatia Inc. can offer without the dilution of: EPS and $8 15 Market Value per Share Note: Do not round off any intermediate calculations. Only the rations shall be rounded off up to four decimals. (1) Pre-Merger MV: Croatia Inc.= $50. Vistara Inc. = $120.(1) (1) 0.6250 (2) 0.4167 (1) Pre-Merger MV: Croatia Inc.= $120. Vistara Inc = $50 (1) (1) 0.6200 (2) 0.4221 (1) Pre-Merger MV: Croatle Inc. $120, Vistara Inc. = $50 (1) (1) 0.6250 (2) 04167 (1) Pre-Merger MV: Croatia Inc.= $110, Vistara Inc. = $120.() (1) 0.6200 (2) 04221

Croatia Inc. is in the process of acquiring Vistara Inc. on a share exchange basis. The information related to the two companies is provided below. Croatia Inc. $14,000,000 1,500,000 Vistara Inc. $6,000,000 1,600,000 $5 10 Profit after tax Shares outstanding Earnings per Share PE Ratio As an analyst of Croatia Inc., you are required to calculate the following: Pre-Merger Market Value per Share of both companies. The maximum share exchange ratio Croatia Inc. can offer without the dilution of: EPS and $8 15 Market Value per Share Note: Do not round off any intermediate calculations. Only the rations shall be rounded off up to four decimals. (1) Pre-Merger MV: Croatia Inc.= $50. Vistara Inc. = $120.(1) (1) 0.6250 (2) 0.4167 (1) Pre-Merger MV: Croatia Inc.= $120. Vistara Inc = $50 (1) (1) 0.6200 (2) 0.4221 (1) Pre-Merger MV: Croatle Inc. $120, Vistara Inc. = $50 (1) (1) 0.6250 (2) 04167 (1) Pre-Merger MV: Croatia Inc.= $110, Vistara Inc. = $120.() (1) 0.6200 (2) 04221

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 7P

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