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Chapter 18, Problem 18.2STP

a)

Summary Introduction

To determine: The earnings per share (EPS).

Introduction:

Earnings per share (EPS) refer to the earnings available to each outstanding share.

b)

Summary Introduction

To determine: The earnings per share (EPS) at ratio of exchange of 1.1.

Introduction:

Earnings per share (EPS) refer to the earnings available to each outstanding share.

c)

Summary Introduction

To compare: Part a) and Part b)and the reason merger look attractive in long run.

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