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Rearden Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Rearden Metal is thinking of buying Associated Steel, which has earnings per share of $1.25, 4 million shares outstanding, and a price per share of $15. Rearden Metal will pay for Associated Steel by issuing new shares. There are no expected synergies from the transaction.
-If Rearden pays no premium to buy Associated Steel, then Rearden's earnings per share after the merger will be closest to:
Maintenance Plan
A strategy for regularly scheduled maintenance activities intended to ensure the long-term efficiency and reliability of equipment, systems, or buildings.
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Additional services that are provided with a main product or service to enhance customer satisfaction and experience.
Unsought Product
Goods that consumers do not normally think of buying or do not know exist until they see them.
Kitchen and Bath Store
A retail outlet specializing in the sale of fixtures, appliances, and accessories for kitchen and bathroom spaces.
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