Wilson Industries is considering the acquisition of the Blanchard Company in a stock-for-stock exchange. Selected financial data
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Wilson Industries is considering the acquisition of the Blanchard Company in a stock-for-stock exchange. Selected financial data for the two companies are shown next. An immediate synergistic earnings benefit of $1 million is expected in this merger, due to cost savings.LO1 Wilson Blanchard Sales (millions) $150 $30 Earnings after taxes (millions) $ 25 $ 3.5 Common shares outstanding (millions) 8 2 Earnings per share $ 3.125 $ 1.75 Dividends per share $ 1.50 $ 0.75 Common stock price per share $ 40 $19.50
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