EPS NEUTRAL ER post merger situation-mb

Nm 412 Nmb (of the new company)

Nb 752 MCAPmb=mca of pm +mca of b
Pm 40.05 Pmb=mca of mergerd entity / no. of shares in
Pb 35.48 EPSm=(total earnings of m +total earnings of
EPSm 0.65 EPSb=(eps of m in the merged entity *ER)
EPSb 0.64 Value/Share for Mellon
total earnings of MELLON 267.80 Value/share for BNY
total earnings of BNY 481.28
MCAPm 16,087
MCAPb 26,908
ER=(EPS of B)/(EPS of M) 0.98461538
 ZERO PREMIUM ER/VALUE NEUTRAL post merger situation-mb
1,152 Nm 412 Nmb
42,995 Nb 752 MCAPmb
37.31 Pm 40.05 Pmb
0.65 Pb 35.48 EPSm
0.64 EPSm 0.65 EPSb
EPSb 0.64 Value/Share for Mellon
Em 267.80 Value/share for BNY
Eb 481.28
MCAPm 16,087
MCAPb 26,908
ER=(price of bny/price of mellon) 0.885892634
 Finally Agreed
1,078 Nm 412
42,995 Nb 752
39.88 Pm 40.05
0.69 Pb 35.48
0.62 EPSm 0.65
EPSb 0.64
Em 267.80
Eb 481.28
MCAPm 16,087
MCAPb 26,908
ER 0.9434
post merger situation-mb
Nmb 1,121
MCAPmb 42,995
Pmb=(mca of combined firm)/ (no. of shares of the merged entity) 38.34
EPSm 0.67
EPSb 0.63
Value/Share for Mellon
Value/share for BNY
Growth Rate 2%

Annual Cost Savings Realized 105 350 595 700

Percentage of potential cost savings 15% 50% 85% 100%
One Time changes 692 337 61 0

BNY Mellon
Deposits 64424 26074
Short Term Debt 1694 1146
Long Term Debt 7817 4404
Total Debt 73935 31624

Market Cap 26908 16087

D/V 73.32% 66.30%
E/V 26.68% 33.70%

Debt beta 0.1 0.1

Equity beta 1.41 1.27

Beta Asset 0.449508 0.49429

The combined compay's beta is caluclated by taking a EV value weighted average of the beta
or you can simply take the average

Enterprice value 100,818 47,694

Wieghts 0.6788546 0.32114538

Beta combined 0.4638895

Rf 4.58%
ERP 6.20%
Tax rate 38%
Ra 7.46%

Post tax savings 65.1 217 368.9 434

Terminal Value 8113.465
Total 65.1 217 368.9 8547.465
Present Value ₹ 6,956.64

Cost of Integration Post tax 429.04 208.94 37.82 0

Present Value ₹ 610.70

PV of Synergies ₹ 6,345.93
d average of the beta