medium · Investment Banking ma-lbo

An acquirer issues 20 million new shares at $50.00 each to buy a target. The target has $100 million in Net Income. The acquirer had 100 million shares and $600 million in Net Income. Calculate the Pro Forma EPS (ignoring synergies and adjustments).

  1. $6.00
  2. $5.83
  3. $7.00
  4. $5.00

Sign up free to see the explanation and track your rank →

More Investment Banking ma-lbo practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 92,240+ practice questions, 30,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials