Copper Clapper Company currently has annual earnings of $10 million with 4 million shares of common stock

Question:

Copper Clapper Company currently has annual earnings of $10 million with 4 million shares of outstanding and a market price per share of $30. In the absence of any mergers, Copper Clapper's annual earnings are expected to grow at a compound rate of 5 percent per annum. Brass Bell Company, which Copper Clapper is seeking to acquire, has present annual earnings of $2 million, 1 million shares of outstanding, and a market price per share of $36. Its annual earnings are expected to grow at a compound annual rate of 10 percent per annum. Copper Clapper will offer 1.2 shares of its stock for each share of Brass Bell Company.
a. What is the immediate effect on the surviving company's earnings per share?
b. Would you want to acquire Brass Bell Company? If it is not attractive now, when will it be attractive from the standpoint of earnings per share? Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...