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ABC Corporation is planning to acquire XYZ Corporation by purchasing all of its shares. The table below provides relevant information about the two companies. Number
ABC Corporation is planning to acquire XYZ Corporation by purchasing all of its shares. The table below provides relevant information about the two companies.
Number of Shares Share Price EPS
ABC million $ $
XYZ million $ $
ABC intends to fund the acquisition by issuing new shares. What will ABC's EPS be after the acquisition, if it pays a premium for XYZs shares? Enter your answer as a number rounded to two decimal places.
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