4. Intel offered Tower Semiconductor $53 per share to purchase the company and expand its manufacturing

capacity. Calculate the Market capitalization at the purchase price. Did Intel pay a fair price for Tower?

The question here would require earnings projections for the merged company however we can conduct a

quick check by evaluating the PEG ratio at the purchase price. First Calculate the P/E ratio at the purchase

price and then calculate the PEG ratio at the purchase price (round to 2 decimal places)? Based on the

PEG ratio is the offer price more or less than the value of the firm?

Use the following data for item 4:

2021 Diluted EPS = 1.37

Earnings Growth Rate = 31.55%