Expected EPS - Merger decision Graham 5 Sons withes 10 evaluate a proposid merger into the RCN Gooup. Grahan had 2015 earnhgs of 1200,000, nas 100 , 000 shares of common stock cutstaniding and expects earings to grow at an arrual fale of 7% RCN had 2016 eamings of $900,000, has 200,000 shaces of cormpnon stock outs andeg, and expects its eamings to grow at 515 . pecyear. a. Cavilate the expected eanings per share (EPS) lor Graham \& Sons for each of the next 5 years (2017.2021) whecut the erierger. b. What would Grahamis stockholders eam in each of the noxt 5 years (2017-20e1) on oach of their Graham shares twapped for fiCN shares at a rato of 0.6 shate of RCN for 1 share of Grithain? a. The eupectnd EPS for Graham 8 Sons for year 2017 wimout the marger is 1 (Hound to Fe nearest cont) The expected EPS for Graham 8 Sont for year 2019 wehout the merger is! (Found to pet nearat cent) The expected EPS for Graham 8 Sons for year 2080 wethot the merger is 1 (Round io Fa neaved cent) The expected EPS for Grahsm 8 Sons for year 2021 w thout the morgut is: (Round to fie newbat cent) b. The expected post-merger EPS in year 2017 for Grahatis shchholdens on each of eneit ongind shares of stock which was swapped tor RiCN sock is 1 (Flound to the nearest oere) The expected poti-merper EPS in year 2015 for. Grahamis stockeidens on each of their erignal shares of stock which wan swapped for ACN siock is The expected pait-merger rg9 in year 2020 sor Grahwis shocholders on each of thei onginal shares of stock which was swapged for RCN sock is I The exptcted post merger EPs in year 2021 lor Grahar's socahoders on each of thei snginal thares of stock which was swabed for RCN atock is 1