Earnings per share of the purchasing firm usually goes in, Ask an Expert

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Earnings per share of the purchasing firm usually goes in which direction during a merger?

EPS will increase immediately if the purchased firm has a lower P/E ratio. B

EPS will decrease immediately if the purchased firm has a lower P/E ratio.

EPS is not affected by the merger.

EPS will increase in the future if the purchased firm is less aggressive.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92416880

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