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%
Fig: 1