As treasurer of Leisure Products, Inc., you are investigating the possible acquisition of Plastitoys. You have the following basic data:

	Leisure Products				Plastitoys
Earnings per share		$	7.00			$	3.50
Dividend per share		$	5.00			$	2.80
Number of shares			1,200,000				800,000
Stock price		$	110			$	40

Growth of 6% in earnings and dividends, under new management growth will increase to 8% per year.

A. What is the gain from aquisition?

What is the cost of the acquisition if Leisure Products pays $45 in cash for each share of Plastitoys

What is the cost of the acquisition if Leisure Products offers one share of Leisure Products for every two shares of Plastitoys?