Tiger Co is looking at a possible acquisition target; Cub Co. Its board will only allow it to undertake accretive trans

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Tiger Co is looking at a possible acquisition target; CubCo. Its board will only allow it to undertake accretivetransactions. Further, due to credit rating constraints, theboard will only permit the company to undertake all-stock takeoveroffers.
Financial and market analysis has indicated that Tiger Co willneed to pay a 25.0% takeover premium, using Tiger stock asconsideration, to successfully acquire Cub Co. Assume nosynergies and no transaction costs.
a) In the following table, fill in ALL of the gaps marked byXXXX to complete the table.
Bidder
Target
Tiger Co
Cub Co
Shares on Issue
5,000,000
8,000,000
Earnings
$14,000,000
$5,000,000
Earnings Per Share
XXXX
XXXX
Trading Price
$38.00
$8.00
Market Capitalisation
XXXX
XXXX
Trading P/E Ratio
XXXX
XXXX
Takeover Offer Price (rounded)
XXXX
Market Capitalisation at Offer Price
XXXX
Offer Price P/E Ratio
XXXX
b) With regard to the merged entity, Merged Co, fill inALL of the gaps marked by XXXX to complete the table. Notethat this table reflects Merged Co immediately AFTER the takeoveris completed.
Merged Co
Shares on Issue
XXXX
Earnings
XXXX
Earnings Per Share
XXXX
Trading Price
$38.00
Market Capitalisation
XXXX
P/E Ratio
XXXX
c) Using your calculations above, will the Tiger Co boardapprove this transaction? Show why or why not.
d) What is the break-even offer price below which the offer isaccretive?
SHOW WORKING FOR EACH PART WHERE POSSIBLE.
CALCULATE ALL GAPS MARKED BY XXXX