Strategic Acquisitions Involving Common Stock The shareholders of company a will experlence an Increase In earnings per share because of the acquisition [$4.10 post-merger EPS versus $4.00 pre-merger EPS] The shareholders of Company B will experience a decrease in earnings per share because of the acquisition. [546875X $4.10 $2.24 post-merger EPS versus $2. 50 pre merger EPs 23-1023-10 Strategic Acquisitions Involving Common Stock The shareholders of Company A will experience an increase in earnings per share because of the acquisition [$4.10 post-merger EPS versus $4.00 pre-merger EPS]. The shareholders of Company B will experience a decrease in earnings per share because of the acquisition. [.546875 x $4.10 = $2.24 post-merger EPS versus $2.50 pre￾merger EPS]