What will eps be expected to be for company a

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Assume Company A buys Company T. Company A has 1,000,000 shares outstanding and net income of $1,000,000. Company T has 400,000 shares outstanding and net income of $800,000. The market price of Company A stock is $30 and the market price of Company T stock is also $30. Assuming Company A exchanges 1 share of Company A stock for 1 share of Company T stock, what will EPS be expected to be for Company A the year following the acquisition?

Reference no: EM132420644

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