In a merger,the short-term and long-term effect on EPS varies according to the relative P/E ratios and the differential future growth rates of the two firms.

Question

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The impact of a merger on EPS depends on various factors such as the relative P/E ratios and the differential future growth rates of the firms involved. Therefore, the short-term and long-term effect on EPS can vary.

In a Merger,the Short-Term and Long-Term Effect on EPS Varies