User Account

All Pages

How long will it take the expected eps

Assignment Help Finance Basics
Reference no: EM131122529

Looking back at Tables 23.3 and 23.4, assume that Diversified Industries acquires High- Tech Products in a stock-for-stock transaction and no immediate synergistic benefits are expected. How long will it take the expected EPS of the combined companies to equal the expected EPS of Diversified without the merger if Diversified is expected to grow at an annual rate of 7 percent without the merger and the combined companies are expected to grow at 8 percent a year?

1468_h.jpg

The exchange ratio is 0.8 share of Diversified common stock for each 1.0 share of Stable Products and 2.0 shares of Diversified for each 1.0 share of High-Tech Products. The net income figure for Diversified Industries (after merger) assumes that no economies of scale or synergistic benefits are realized as a result of either proposedmerger.  

Reference no: EM131122529

Questions Cloud

Diagnose the need for change and present plan : Think of an organization you have worked for or one with which you are very familiar. Diagnose the need for change and present a plan to transform the organization, utilizing Kotter’s 8-Step Approach. Include the following sections headings and addit..
What is the amount of cash required for the payment : If Kosmos Company pays the invoice within the discount period, what is the amount of cash required for the payment?
Define persuasive message to promote appreciation : Create and describe a foot-in-the-door or door-in-the-face strategy that can facilitate a positive behavior toward a disliked group. After you identify the group and the target behavior, explain whom you would try to change and what steps would be..
What is the maximum inventory of fertilizer : What is the Economic Ordering Quantity? What is the maximum inventory of fertilizer? What will be the firm's average inventory? How often must the company order?
How long will it take the expected eps : How long will it take the expected EPS of the combined companies to equal the expected EPS of Diversified without the merger if Diversified is expected to grow at an annual rate of 7 percent without the merger and the combined companies are expected ..
Six reasons tim cook is doing a great job : After reading the Forbes articles “Six Reasons Tim Cook Is Doing A Great Job As Apple’s CEO” and “All Excuses Aside, Apple’s Major Problem Is Tim Cook,” explain the impact you think the transition from Steve Jobs to Tim Cook has had on Apple’s primar..
Discuss reasons for healthcare costs being higher per captia : Discuss the reasons for healthcare costs being higher per capita in the United States than in any other country.  Will the upward trend continue or decline?  Why? Medicare and Medicaid have traditionally been leaders in designing and implementing cos..
Received payment less the discount : Journalize the following merchandise transactions:
How much money has been borrowed in the energy sector : How much money has been borrowed in the energy sector by smaller companies hoping to capitalize on the oil market in the last two years

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd