CC company, whose stock is currently selling for RM4 per share, is interested in acquiring DD company. To prepare for the acquisition, CC has been repurchasing its own shares over the past 3 years. DD's stock is currently selling for RM0.60 per share, but in the merger negotiations, CC has found it necessary to offer DD RM1.00 per share. Below is the financial information which relates to CC and DD: CC company DD company Earnings available for common stock RM500,000 RM80,000 Number of shares of common stock outstanding 250,000 40,000 Required: (1) Calculate the earnings per share (EPS) before and after the merger. (6 marks) Is DD company has higher or lower P/E ratio as compared with CC company? (1 mark)