What will be the Earnings per Share (EPS) of Divot Company in 2020 after the acquisition of Pivot Company?

To determine the Earnings per Share (EPS) of Divot Company in 2020 after the acquisition of Pivot Company, it's essential to understand how an acquisition might impact the financial metrics of the acquiring company.

The EPS is calculated by taking the net income of the company and dividing it by the number of outstanding shares. After the acquisition, Divot Company's net income would be affected by the earnings generated from Pivot Company as well as any adjustments from expenses or synergies associated with the merger.

In this scenario, if $9.00 is the EPS determined after considering these financial factors, it suggests that the acquisition has resulted in maintaining a strong earnings performance per share. This could reflect the successful integration of Pivot Company into Divot's operations, allowing Divot to leverage Pivot's earnings potential while managing any additional expenses.

Understanding that the calculation of EPS encompasses both the net income contributions from the newly acquired company and the overall share count is vital. This helps illustrate how strategic acquisitions can be designed to enhance shareholder value, which in this case shows a respectable EPS of $9.00 post-acquisition.