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The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt...

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Finance

The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt Corporation. Jolie has a price of $20 per share, earnings of $240,000, and 60,000 shares outstanding. Pitt has a price of $60, earnings of $600,000, and 120,000 shares outstanding. Jolie's shareholders will receive one share of Pitt stock for every three shares they hold in Jolie. Assume the NPV of the acquisition is zero. What will the post-merger EPS be for Pitt?

A) $4 per share

B) $4.550 per share

C) $5 per share

D) $5.793 per share

E) $6 per share

. All of the following are related to a takeover except a:

A) tender offer.

B) consolidation.

C) going private transaction.

D) proxy contest.

E) strategic alliance.

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