Innovative Concepts (after the acquisition) Innovative The Market is Concepts QuickResolve The Market is Fooled Smart Earnings per share $1.50 $1.20 $ 1.68 $ 1.68 Price per share $45 $ 15.00 50.40 $45 Price-earnings ratio 30 12.5 30 26.79 Number of shares 100,000,000 50,000,000 125,000,000 125,000,000 Total earnings $150,000,000 $60,000,000 $210,000,000 $210,000,000 Total value $4,500,000,000 $750,000,000 $6,300,000,000 $5,625,000,000 Exchange Ratio = 0.50