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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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