There are two companies A and B. A wants to acquire B. Suppose As outstanding shares are double of your registration numbers and Bs outstanding shares are half of your registration number if you are given with the following data Earnings per share $ 10 $ 3 Dividend per share $ 6 $ 1.6 Stock price $102 $27 You estimate that investors currently expect a growth of 10% in Bs Earnings and Dividends. You would believe that As products could increase Bs growth 12% per year without any additional capital. i. What is the gain from acquisitions ii. What is the cost of acquisitions if A pays $35 in cash for each of the share of B? iii. What is the cost of acquisition if A offer one share of A for every 3 of B? iv. Which acquisition is most costly for A and why?

MY REGISTRATION NUMBER IS 312