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Please find attached the questions. This is an M&A problem questions and need to be solved according to guidelines by Wall Street Prep. The solutions needs to be done on EXCEL.

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Please find attached the questions. This is an M&A problem questions and need to be solved according to guidelines by Wall Street Prep. The solutions needs to be done on EXCEL.
Answered Same Day Mar 10, 2021

Solution

Tanmoy answered on Mar 12 2021
158 Votes
Sheet1
    Q.1    Accretion/ Dilution Analysis
        Particulars    Acquirer Glocabe (in $)    Target Jupiter (in $)    Proforma
        Acquire
        Cu
ent Share price    30
        Diluted Shares Outstanding    4500000
        2019 EPS forecast    3.12
        Acquirer shares issued in transaction    4400000
        Target
        Pre-deal Share Price        50
        Offer price per share        60
        % Offer Premium        20%
        Shares Outstanding        2200000
        Offer Value        132000000
        2019 EPS forecast        4.51
        Accretion/ Dilution Analysis
        Implied Standalone Net Income    14040000    9922000
        Proforma Net Income            23962000
        Proforma Shares Outstanding            8900000
        Proforma Earning per share (EPS)            2.69
        Acquirer standalone EPS            3.12
        Accretion/ Dilution per share            -0.43
        Accretion/ Dilution %            -13.7%
        Hence, the acquisition is negative and is dilutive for the shareholders
    Q.2    Particulars    Acquirer Pegasus ($ in millions)    Target Chimera ($ in million)    Proforma ($ in million)
        Implied Standalone Net Income    14.04    9.92                Deal Assumptions
        Implied Standalone Pretax Net Income    23.40    15.26                Deal Date    1/1/17
        Proforma Pretax Income - Unadjusted            38661538
        Less: Interest Expenses...
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