Reference no: EM131110443
Graham & Sons wishes to evaluate a proposed merger into the RCN Group. Graham had 2012 earnings of $200,000, has 100,000 shares of common stock outstanding, and expects earnings to grow at an annual rate of 7%. RCN had 2012 earnings of $800,000, 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 (2013-2017) without the merger.
b. What would Graham's stockholders earn in each of the next 5 years (2013-2017) on each of their Graham shares swapped for RCN shares at a ratio of (1) 0.6 and (2) 0.8 share of RCN for 1 share of Graham?
c. Graph the premerger and postmerger EPS figures developed in parts a and b with the year on the x axis and the EPS on the y axis.
d. If you were the financial manager for Graham & Sons, which would you recommend from part b, (1) or (2)? Explain your answer
|
Design a plan to integrate the different routing protocols
: Design a plan to integrate the different routing protocols into a new network design for Genome4U's lab. Identify the information you will redistribute between routing protocols.
|
|
What strategy is hugh using to improve his self control
: What strategy is Hugh using to improve his self control - Which of the following schedules of reinforcement is the basis for gambling
|
|
How to modify the single neuron
: In this problem, we explore how to modify the single neuron of Section 8.4 so as to find the minor component of R. In particular, we make a change of sign in the learning rule of Eq. (8.40), obtaining the following (Xu et al., 1992):
|
|
The impact of asian fuel subsidies
: Your Tasks Assume that you have been employed as a consultant to write a report on fuel subsidies. It should follow a normal report structure.The main body of the report should answer the following questions:1/ Using a supply and demand diagram illus..
|
|
What would graham''s stockholders earn
: Calculate the expected earnings per share (EPS) for Graham & Sons for each of the next 5 years (2013-2017) without the merger. What would Graham's stockholders earn in each of the next 5 years (2013-2017) on each of their Graham shares swapped for RC..
|
|
Plot the learning curve of the gha
: Plot the learning curve of the GHA, where the algorithm is trained on the Lena image (i.e., the mean-square error is plotted versus the number of epochs used for training).
|
|
How many new shares of stock will cleveland have to issue
: Cleveland has sufficient authorized but unissued shares to carry out the proposed merger. Cleveland has sufficient authorized but unissued shares to carry out the proposed merger. How many new shares of stock will Cleveland have to issue to make the ..
|
|
List three to five measures that can be taken
: Select a critical infrastructure or facility, such as a power plant or dam, and list three to five measures that can be taken as part of a risk analysis to better secure this site.
|
|
Why the multiquadric is excluded from the class of green''s
: However, the class of Green's functions includes only the first two radial-basis functions. Explain why the multiquadric is excluded from the class of Green's functions.
|