HungryHippo Inc. is considering the acquisition of two competitors: BigCrocs with EPS $2 and 50,000 shares trading

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HungryHippo Inc. is considering the acquisition of two competitors:

BigCrocs with EPS $2 and 50,000 shares trading at $3 each

Pridelions with EPS $0.7 and 20,000 shares trading at $5 each

If HungryHippo Inc. has an EPS of $4 and 120,000 shares outstanding, which are trading at $12 each. Assume that HungryHippo Inc. issues shares to finance the acquisition

The goal of the HungryHippo Inc. is to have the highest EPS. Which competitor(s) should it buy?

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Jun 26, 2023 02:54 AM

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HungryHippo Inc. is considering the acquisition of two competitors: BigCrocs with EPS $2 and 50,000 shares trading

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Corporate Finance A Focused Approach

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