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 Shares 200,000 Shares (Ownership) Acquired (100% 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, Proposal 2 150,000 Shares (75% ownership) Immediate cash payment of $29 per share acquired Issuance of one share of Florence's ordinary share for every ten shares acquired. (Florence's ordinary share is assumed to have fair value of around $40 per share) 2023 if the average yearly net income post-acquisition for the period exceeds $250,000. (Based on the current estimation, there is a 60% chance of this happening) (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 Florence's EPS for the year of acquisition.