Florence Corporation (Florence) is considering the following proposals to acquire the control over Gillian Limited (Gillian). The acquisition is assumed to be in action on December 31, 2021 and the cost of capital is assumed to be 10% p.a.

	Proposal 1	Proposal 2
Shares (Ownership) Acquired	200,000 Shares (100% ownership)	150,000 Shares (75% ownership)
Considerations	- Immediate cash payment of $20 per share acquired - Deferred cash payment of $11 per share acquired payable on December 31, 2022 - Contingent cash payment of $6.05 per share acquired payable on December 31, 2023 if the average yearly net income for the post-acquisition period exceeds $250,000. (Based on the current estimation, there is a 60% chance of this happening)	- Immediate cash payment of $29 per shareacquired - Issuance of one share of Florences ordinary share for every ten shares acquired. (Florences ordinary share is assumed to have fair value of around $40 per share)

(a) Determine the fair value of the purchase considerations in both acquisition proposals (proposal 1 and proposal 2). Besides the price of the acquisition, what other factors Florence should consider when acquiring the other companies?

(b) Shareholders of Florence draw high attention to the earnings per share (EPS) ratio. Determine and discuss if the acquisition of Gillian by using either acquisition proposal is accretive or dilutive to Florences EPS for the year of acquisition