One of the effects of a merger that can easily mislead investors into overvaluing a firm is the: 1) Appearance of earnings per share growth when no such growth exists. 2) Change in the number of shares outstanding in an all cash merger. 3) Increase in total assets as a result of goodwill recognition under the pooling of interest accounting system. 4) Change in the total value of a firm under the pooling of interest accounting system. 05) Increase in cash flows due to the additional leverage required to fund the acquisition