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Rearden Metal has earnings per share of $4.27. It has 8 million shares outstanding and...

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Accounting

Rearden Metal has earnings per share of $4.27. It has 8 million shares outstanding and is trading at $27 per share. Rearden Metal is thinking of buying Associated Steel, which has earnings per share of $1.79, 4 million shares outstanding, and a price per share of $18. Rearden Metal will pay for Associated Steel by issuing new shares. There are no expected synergies from the transaction. What is Reardon's earnings per share (EPS) after the takeover?

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