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QUESTION 7 Mergers which attempt to bootstrap earnings may obtain increased earnings per share at the expense of: A a higher price-earnings ratio. B increased free-cash-flow. reduced future growth prospects higher total combined market value. QUESTION B Use the following information to answer questions 8 and 9

QUESTION 7 Mergers which attempt to bootstrap earnings may obtain increased earnings per share at the expense of: A a higher price-earnings ratio. B increased free-cash-flow. reduced future growth prospects higher total combined market value. QUESTION B Use the following information to answer questions 8 and 9

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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QUESTION 7 Mergers which attempt to bootstrap earnings may obtain increased earnings per share at the expense of: A a higher price-earnings ratio. OB increased free-cash-flow. a reduced future growth prospects D higher total combined market value. QUESTION B Use the following information to answer questions 8 and 9 The Harden and Papy Companies has the following balance sheet Harden Play $300 milion $500 Cash Other assets Value of the firm Shares Outstanding $800 million 100 million The Harden Company will distribute $100 million as cash dividends to stock holders While Pixpy Company will repurchase stocks worth of $100 million from stockholders What will be the Harden company stock price after the cash dividends? A $7 8.59 CNon of the above $300 million $500 million CO.SN $800 milion 100 milion
Transcribed Image Text:QUESTION 7 Mergers which attempt to bootstrap earnings may obtain increased earnings per share at the expense of: A a higher price-earnings ratio. OB increased free-cash-flow. a reduced future growth prospects D higher total combined market value. QUESTION B Use the following information to answer questions 8 and 9 The Harden and Papy Companies has the following balance sheet Harden Play $300 milion $500 Cash Other assets Value of the firm Shares Outstanding $800 million 100 million The Harden Company will distribute $100 million as cash dividends to stock holders While Pixpy Company will repurchase stocks worth of $100 million from stockholders What will be the Harden company stock price after the cash dividends? A $7 8.59 CNon of the above $300 million $500 million CO.SN $800 milion 100 milion
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