Strategic Acquisitions Involving Common Stock The shareholders of company a will experience a decrease in earnings per share because of the acquisition [$3.90 post merger EPS versus $4.00 pre-merger EPS The shareholders of company B will experlence an Increase In earnings per share because of the acquisition. [-703125X $4.10=$2.88 post-merger EPS versus $2.50 pre-merger EPS] 23-1323-13 Strategic Acquisitions Involving Common Stock The shareholders of Company A will experience a decrease in earnings per share because of the acquisition. [$3.90 post￾merger EPS versus $4.00 pre-merger EPS] The shareholders of Company B will experience an increase in earnings per share because of the acquisition. [.703125 x $4.10 = $2.88 post-merger EPS versus $2.50 pre-merger EPS]