Explain what would woodson''s shareholders earn

Assignment Help Business Management
Reference no: EM13109522

Woodson and Sons Inc. of Chandler Arizona wishes to assess the proposed merger into the Oxley Group. Woodson had 2004 earnings of $200,000 and 100,000 shares of common stock outstanding, as well as expect earnings to grow at an annual rate of 7 percent. Oxley on the other hand had 2004 earnings of $800,000 with 200,000 shares of common stock outstanding as well as expects its earnings to grow at an annual rate of 3%.
a. Compute the earnings per share (EPS) for Woodson for the next 8 years without merger.
b. Explain what would Woodson's shareholders earn in each of the next 8 years on each of their shares swapped for Oxley's shares at the ratio of (1) 0.6 and (2) 0.08 shares of Oxley for one share of Woodson?
c. If you were the financial manager of Woodson as well as Sons which option would your recommend? B-1 or B-2? Why?

Reference no: EM13109522

Questions Cloud

Determine how many grams of alcl3 are formed : determine How many grams of AlCl 3 are formed if 30.0 grams of Hydrogen are produced? It is given that the molar mass of AlCl 3 =133.33 g/mol.
Determine molecular formula and molar mass : Determine its molecular formula if the molar mass of the compound = 199.55 grams per mole?
Compute the value of the test statistic t for matched paired : Compute the value of the test statistic t for matched paired data where the average of the differences for a sample
Conduct one-and two-sample tests of hypotheses : What are the most important concepts you have learned from conduct one-and two-sample tests of hypotheses? What would you recommend to your management/leadership based conduct one-and two-sample tests of hypotheses?
Explain what would woodson''s shareholders earn : Explain what would Woodson's shareholders earn in each of the next 8 years on each of their shares swapped for Oxley's shares at the ratio of (1) 0.6 and (2) 0.08 shares of Oxley for one share of Woodson?
Disadvantages does m-commerce provide for bookseller : What advantages as well as disadvantages does m-commerce provide for each bookseller?
Develop material requirement plan : The MPS for product A calls for 100 units to be completed in week 4 and 200 units in week 7 (the lead time is 1 week). Spare part demand for Item B is 10 units per week.
Compute the value of the test statistic : Compute the value of the test statistic F where the standard deviation for the example selected from one population is 17.75 as well as the standard deviation from the sample
Determine how many pills does the female require : Determine how many pills does the female require to take each time she wants the dosage of 375miliigrams?

Reviews

Write a Review

Business Management Questions & Answers

  Fmc aberdeen

Kenneth Dailey, site manager for FMC Corporation's Green River, Wyoming, facility, leaned back in his seat in the conference room near his office. He was listening to a team of employees tell him about their visit to FMC's Aberdeen,

  Elucidate in detail the obligation of the insurer

Elucidate in detail the obligation of the insurer under a straight life income option, life income with 10 years certain, and life income with instalment refund.

  Decentralized architecture and a centralized architecture

What in your opinion is the difference among a decentralized architecture and a centralized architecture? What is an instance of a business decision that would be affected by the choice of the architecture?

  Important information about management information system

Write six closed questions that cover the subject of decision-making style for the manager described in the scenario.

  Discussion of obligations a company

What obligations do you feel a firm has to ensure that its workers are not harmed by having their opportunity for advancements limited by social customs of a host nation,

  Introduce upper-management to effectively manage salaries

Describe what steps, methods and analysis would you incorporate or introduce to upper-management to effectively manage salaries - show what challenges would you predict to administer the salary program in this growth period?

  Analyze the individual values

Analyze the individual values and the organization's values

  What it incomes to you to be a psychologist

A personal definition of psychology and or counselling based on what you knew coming into this course as well as what you now know What it incomes to you to be a psychologist or counsellor who is a scholar-practitioner

  Question related to gaming management

What aspects of the gaming industry should be regulated by the state or federal government and what aspects of the gaming industry should be regulated by the gaming establishments themselves?

  Retain management''s support of a compliance program

How can compliance programs be beneficial to a company when management feels there is no risk for the business operation? How would you retain management's support of a compliance program for a firm based in the US but operating in multiple countr..

  Show the workplace security

From a security point of view, was this appropriate actions taken by BART or did this cross Constitutional protection lines? What are your thoughts?

  Illustrate what is the current market price of these bonds

Jackson Corporations bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value and the coupon interest rate is 8%. The bonds have a yield to maturity of 9%. Illustrate what is the current market price ..

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!

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