Linpro Industries is considering the acquisition of Odetics, Inc.in a stock-for-stock exchange.Assume no immediate synergistic benefits are expected.Selected financial data on the two companies are shown below:

Calculate Linpro's postmerger EPS if the Odetics shareholders accept an offer of $90 a share in a stock-for-stock exchange.
A)$4.38
B)$4.29
C)$3.42
D)$3.81

Question

Linpro Industries is considering the acquisition of Odetics, Inc.in a stock-for-stock exchange.Assume no immediate synergistic benefits are expected.Selected financial data on the two companies are shown below:

Calculate Linpro's postmerger EPS if the Odetics shareholders accept an offer of $90 a share in a stock-for-stock exchange.

Calculate Linpro's postmerger EPS if the Odetics shareholders accept an offer of $90 a share in a stock-for-stock exchange.
A)$4.38 
B)$4.29 
C)$3.42 
D)$3.81

Quizplus · Accepted Answer

ER = $90/$45.60 = 1.97
EPS = (38 + 10.4)/[10 + 2.1(1.97)] = $3.42

Linpro Industries Is Considering the Acquisition of Odetics, Inc