Strategic Acquisitions Involving Common Stock Surviving firm EPs will increase any time the P/E ratio aid ?for a firm is less than the pre-merger P/E ratio of the firm doing the acquiring. [Note: P/E ratio Raid ?for Company B is $35/$2.50 14 versus pre merger P/E ratio of 16 for Company A ] 23-1123-11 Strategic Acquisitions Involving Common Stock Surviving firm EPS will increase any time the P/E ratio 損aid?for a firm is less than the pre-merger P/E ratio of the firm doing the acquiring. [Note: P/E ratio 損aid?for Company B is $35/$2.50 = 14 versus pre￾merger P/E ratio of 16 for Company A.]