Resources, Inc., is engaged in an aggressive program of acquiring competing companies through the exchange of common

Question:

Resources, Inc., is engaged in an aggressive program of acquiring competing companies through the exchange of common stock.
a. Explain how an acquisition program might contribute to the rate of growth in earnings per share of Resources, Inc.
b. Explain how the income statements of prior years might be adjusted to reflect the potential future earnings trend of the combined companies.
(CFA Adapted)