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HungryHippo Inc. is considering the acquisition of two competitors: BigCrocs with EPS $2 and 50,000 shares trading at $3 each Pridelions with EPS $0.7 and
HungryHippo Inc. is considering the acquisition of two competitors:
- BigCrocs with EPS $2 and 50,000 shares trading at $3 each
- Pridelions with EPS $0.7 and 20,000 shares trading at $5 each
If HungryHippo Inc. has an EPS of $4 and 120,000 shares outstanding, which are trading at $12 each. Assume that HungryHippo Inc. issues shares to finance the acquisition. The goal of the HungryHippo Inc. is to have the highest EPS. Which competitor(s) should it buy?
Select one:
0 a. BigCrocs
0 b. Pridelions
0 c. Both
0 d. HungryHippo Inc. should not complete an acquisition
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