Read following information to answer question no. 17 & 18. At the end of 2020, CVN ltd. had 120,000 shares of common stock outstanding and had earnings available for common of $300,000. TPO Itd., at the end of 2020, had 15,000 shares of common stock outstanding and had earned $28,000 for common shareholders. CVN's earnings are expected to grow at an annual rate of 6% in next 6 years, and TPO's growth rate in earnings would be 12% per year in next 6 years. Question No. 17 Calculate earnings per share (EPS) for CVN and TPO for year 2020 and each of the next 6 years if CVN acquires TPO at a ratio of exchange of 1.3. Question No. 18 Describe the initial effect and long run effect on EPS of CVN and TPO. Does merger look beneficial for CVN and TPO? Why or why not? Read following information to answer question no. 17 & 18. At the end of 2020, CVN ltd. had 120,000 shares of common stock outstanding and had earnings available for common of $300,000. TPO Itd., at the end of 2020, had 15,000 shares of common stock outstanding and had earned $28,000 for common shareholders. CVN's earnings are expected to grow at an annual rate of 6% in next 6 years, and TPO's growth rate in earnings would be 12% per year in next 6 years. Question No. 17 Calculate earnings per share (EPS) for CVN and TPO for year 2020 and each of the next 6 years if CVN acquires TPO at a ratio of exchange of 1.3. Question No. 18 Describe the initial effect and long run effect on EPS of CVN and TPO. Does merger look beneficial for CVN and TPO? Why or why not