Question
Expected EPS Merger decision Graham & Sons wishes to evaluate a proposed merger into the RCN Group. Graham had 2019 earnings of $150,000, has 100,000
Expected
EPSMerger
decisionGraham & Sons wishes to evaluate a proposed merger into the RCN Group. Graham had
2019
earnings of
$150,000,
has
100,000
shares of common stock outstanding, and expects earnings to grow at an annual rate of
7%.
RCN had
2019
earnings of
$800,000,
has
200,000
shares of common stock outstanding, and expects its earnings to grow at
3%
per year.
b.What would Graham's stockholders earn in each of the next 5 years
(2020-2024)
on each of their Graham shares swapped for RCN shares at a ratio of
0.5
share of RCN for 1 share of Graham?
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Risk Management In Forex How To Minimize Losses And Maximize Returns
Authors: Eunice Loar
1st Edition
979-8388778864
