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Use the information below to calculate the accretion / dilution in the acquisition. In $millions ASSUMPTIONS Pro - Forma Combined Net Income $ 1 ,

Use the information below to calculate the accretion/dilution in the acquisition.
In $millions
ASSUMPTIONS
Pro-Forma Combined Net Income $1,000
Acquirer Stand-Alone Net Income 700
Acquirer Stand-Alone Shares Outstanding 200
Net New Shares issued in Transaction 50
Tax Rate 25%
A. Calculate the acquirer stand-alone EPS
B. Calculate the pro-forma combined EPS
C. Calculate the accretion (dilution) on a dollar and percentage (%) basis

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