Question: How to solve Expected EPS - Merger decision Graham & Sons wishes to evaluate a proposed merger into the RCN Group. Graham had 2 0

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Expected EPS-Merger decision Graham & Sons wishes to evaluate a proposed merger into the RCN Group. Graham had 2019 earnings of $200,000, has 100,000 shares of common stock outstanding, and expects earnings to grow at an annual rate of 8%. RCN had 2019 earnings of $850,000, has 200,000 shares of common stock outstanding, and expects its earnings to grow at 5% per year.
a. Calculate the expected earnings per share (EPS) for Graham & Sons for each of the next 5 years (2020-2024) without the merger.
b. What would Graham's stockholders earn in each of the next 5 years (2020-2024) on each of their Graham shares swapped for RCN shares at a ratio of 0.8 share of RCN for 1 share of Graham?
a. The expected EPS for Graham & Sons for year 2020 without the merger is $ q,(Round to the nearest cent.)
How to solve Expected EPS-Merger decision Graham & Sons wishes to

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