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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 | $ | 6.00 | $ | 2.50 | ||||
| Dividend per share | $ | 4.00 | $ | 1.80 | ||||
| Number of shares | 1,100,000 | 700,000 | ||||||
| Stock price | $ | 100 | $ | 30 | ||||
| You estimate that investors currently expect a steady growth of about 8% in Plastitoys |
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