The RS Company is currently earning $10 per share and expects to grow at a rate of

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The RS Company is currently earning $10 per share and expects to grow at a rate of 0.05 per year. If RS merges with T Company, which is growing at 0.14, the earnings will be reduced to $8 per share and the growth rate will be 0.09.

In how many years will the earnings per share of the merged firms equal the earnings per share of RS without the merger?

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An Introduction To Accounting And Managerial Finance A Merger Of Equals

ISBN: 9789814273824

1st Edition

Authors: Harold JR Bierman

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Question Posted: Dec 12, 2023 03:38 AM

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The RS Company is currently earning $10 per share and expects to grow at a rate of

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An Introduction To Accounting And Managerial Finance A Merger Of Equals

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