How much is the Maytag Corporation approximately worth? If Haier submitted a bid for Maytag, what would be a bid price?
·from a financial perspective (price-earning or P/E ratio):
Ø market value = “multiple” x EPS x common shares outstanding
Ø industry “multiples” ranges from 16-21
Ø projected earning-per-share: $.54 (2005), $.75 (2006), and $.80 (2007)
Ø common share outstanding= dollar value of bid ($1,13 billion)/share price bid ($14)
·What the biding price is actually buying (tangible and intangible) based on Maytag’s consolidated balance sheet for 2004 (Exhibit 8A)?
·from a strategic perspective (how much is the Maytag worth to Haier) — benefits, cost and opportunity cost