Answer the following statements as true or false. a. Firm A with a high P/E acquires Firm

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Answer the following statements as true or false.

a. Firm A with a high P/E acquires Firm B with a low P/E. The EPS of A will increase immediately as a result of the acquisition.

b. The EPS for a period 10 years from now will certainly be larger for A as a result of the acquisition.

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