How much is the Maytag Corporation approximately worth? 

·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)

If Haier submitted a bid for Maytag, what would be a bid price?

From a strategic perspective (how much is the Maytag worth to Haier) — benefits, cost and opportunity cost