medium · Investment Banking ma-lbo

In a merger model, Acquirer Co has 100 million shares and earns $5.00 per share standalone. It issues 20 million new shares to buy Target Co. Target Co contributes $150 million in Net Income.

Excluding synergies, what is the pro-forma EPS?

  1. $7.50
  2. $6.50
  3. $5.00
  4. $5.42

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