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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
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 | $ | 5.60 | $ | 2.10 | ||||
| Dividend per share | $ | 3.60 | $ | 1.40 | ||||
| Number of shares | 1,060,000 | 660,000 | ||||||
| Stock price | $ | 96 | $ | 26 | ||||
| You estimate that investors currently expect a steady growth of about 8% in Plastitoys |
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