Earnings per share for Company G&S for the each of the next 5 years without the merger. Introduction: Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

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Answer 1

Question

Chapter 18, Problem 18.10P

a)

Summary Introduction

To determine: Earnings per share for Company G&S for the each of the next 5 years without the merger.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

b)

Summary Introduction

To determine: The earnings of G Company in each of the next 5 years.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

c)

Summary Introduction

To construct: The graph of premerger and post-merger EPS

d)

Summary Introduction

To discuss: The recommendation on the above parts for G&S Company

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Graham & Sons wishes to evaluate a proposed merger into the RCN Group. Graham had 2019 earnings of $250,000, has 100,000 shares of common stock outstanding, and expects earnings to grow at an annual rate of 9%. RCN had 2019 earnings of $900,000, has 200,000 shares of common stock outstanding, and expects its earnings to grow at 3% per year. a. Calculate the expected earnings per share (EPS) for Graham & Sons for each of the next 5 years (2020-2024) without the merger. part A answers are completed year 2020: $2.725 year 2021: $2.97425 year 2022: $3.24239 year 2023: $3.53487 year 2024: $3.85425 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 0.8 share of RCN for 1 share of Graham? Part B is where I need help. year 2020 EPS: $3.43 year 2021 EPS: $ ?year 2022 EPS: $ ?year 2023 EPS: $ ? year 2023 ESP: $ ? please help me find calculation for year 2021 to year…

Graham & Sons wishes to evaluate a proposed merger into the RCN Group. Graham had 2019 earnings of $250,000, has 100,000 shares of common stock outstanding, and expects earnings to grow at an annual rate of 9%. RCN had 2019 earnings of $900,000, has 200,000 shares of common stock outstanding, and expects its earnings to grow at 3% per year. a. Calculate the expected earnings per share (EPS) for Graham & Sons for each of the next 5 years (2020-2024) without the merger. 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 0.8 share of RCN for 1 share of Graham?

Merger analysis -- buy or not? Assume earnings-before-tax of $400 million in 2020, $440 million in 2021, and $484 in 2022. Constant growth thereafter at 6% per year. Cost of equity = 14%. Market price of target company is $42.60/share. You're willing to bid a maximum of 10% over market price. Tax rate = 21%; annual depreciation = $80 million, with anticipated reinvestment at 75% of depreciation. Assume 90 million shares outstanding.

Answer 2

Question

Chapter 18, Problem 18.10P

a)

Summary Introduction

To determine: Earnings per share for Company G&S for the each of the next 5 years without the merger.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

b)

Summary Introduction

To determine: The earnings of G Company in each of the next 5 years.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

c)

Summary Introduction

To construct: The graph of premerger and post-merger EPS

d)

Summary Introduction

To discuss: The recommendation on the above parts for G&S Company

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Answer 3

Question

Chapter 18, Problem 18.10P

a)

Summary Introduction

To determine: Earnings per share for Company G&S for the each of the next 5 years without the merger.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

b)

Summary Introduction

To determine: The earnings of G Company in each of the next 5 years.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

c)

Summary Introduction

To construct: The graph of premerger and post-merger EPS

d)

Summary Introduction

To discuss: The recommendation on the above parts for G&S Company

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Answer 4

Question

Chapter 18, Problem 18.10P

a)

Summary Introduction

To determine: Earnings per share for Company G&S for the each of the next 5 years without the merger.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

b)

Summary Introduction

To determine: The earnings of G Company in each of the next 5 years.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

c)

Summary Introduction

To construct: The graph of premerger and post-merger EPS

d)

Summary Introduction

To discuss: The recommendation on the above parts for G&S Company

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Answer 5

Chapter 18, Problem 18.10P

a)

Summary Introduction

To determine: Earnings per share for Company G&S for the each of the next 5 years without the merger.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

b)

Summary Introduction

To determine: The earnings of G Company in each of the next 5 years.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

c)

Summary Introduction

To construct: The graph of premerger and post-merger EPS

d)

Summary Introduction

To discuss: The recommendation on the above parts for G&S Company

Answer 6

Chapter 18, Problem 18.10P

a)

Summary Introduction

To determine: Earnings per share for Company G&S for the each of the next 5 years without the merger.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

Answer 7

Chapter 18, Problem 18.10P

a)

Summary Introduction

To determine: Earnings per share for Company G&S for the each of the next 5 years without the merger.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

Answer 8

b)

Summary Introduction

To determine: The earnings of G Company in each of the next 5 years.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

Answer 9

b)

Summary Introduction

To determine: The earnings of G Company in each of the next 5 years.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

Answer 10

c)

Summary Introduction

To construct: The graph of premerger and post-merger EPS

Answer 11

c)

Summary Introduction

To construct: The graph of premerger and post-merger EPS

Answer 12

d)

Summary Introduction

To discuss: The recommendation on the above parts for G&S Company

Answer 13

d)

Summary Introduction

To discuss: The recommendation on the above parts for G&S Company

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 18.1 - Prob. 18.1RQ Ch. 18.1 - Prob. 18.2RQ Ch. 18.1 - Prob. 18.3RQ Ch. 18.2 - Prob. 18.4RQ Ch. 18.2 - Prob. 18.5RQ Ch. 18.3 - Prob. 18.6RQ Ch. 18.3 - What is the ratio of exchange? Is it based on the...Ch. 18.3 - Prob. 18.8RQ Ch. 18.3 - Prob. 18.9RQ Ch. 18.3 - Prob. 18.10RQ

Earnings per share for Company G&S for the each of the next 5 years without the merger. Introduction: Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

Solution Summary: The author explains that grouping of two or more companies and the identity of one company is taken by the resulting company, is termed mergers.

To determine: Earnings per share for Company G&S for the each of the next 5 years without the merger.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

To determine: The earnings of G Company in each of the next 5 years.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

To construct: The graph of premerger and post-merger EPS

To discuss: The recommendation on the above parts for G&S Company

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Chapter 18 Solutions

Earnings per share for Company G&amp;S for the each of the next 5 years without the merger. Introduction: Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

Solution Summary: The author explains that grouping of two or more companies and the identity of one company is taken by the resulting company, is termed mergers.

To determine: Earnings per share for Company G&S for the each of the next 5 years without the merger. Introduction: Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

To determine: The earnings of G Company in each of the next 5 years. Introduction: Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

To construct: The graph of premerger and post-merger EPS

To discuss: The recommendation on the above parts for G&S Company

Want to see the full answer?

Chapter 18 Solutions

Earnings per share for Company G&S for the each of the next 5 years without the merger. Introduction: Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

To determine: Earnings per share for Company G&S for the each of the next 5 years without the merger.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.

To determine: The earnings of G Company in each of the next 5 years.

Introduction:

Grouping of two or more companies and the identity of one company is taken by the resulting company is termed as mergers. Merger is where a large firm mergers the small firms.