answer with excel functions when applicable

5) (20 points) Assume for this question that NCC plans to acquire Portable through a stock swap. A. (2 points) What is the ratio of exchange in a stock swap acquisition if NCC pays $19 per share for Portable? B. (15 points) What effect will this stock swap have on the EPS of the original shareholders of each company? Show the before and after merger EPS for each company's stockholders. (Reference Example 18.6 on page 819 of your textbook for help.) C. (3 points) Based on this analysis, should NCC move forward with the acquisition? Why? \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & A & B & C & D & E & F & G \\ \hline 1 & & & & & & & \\ \hline 2 & Part A & \multicolumn{2}{|c|}{ Current Share Price: } & & & & \\ \hline 3 & & NCC & Portable & & & & \\ \hline 4 & & 43.3 & 19 & & & & \\ \hline 5 & & & & & & & \\ \hline 6 & & \multicolumn{2}{|c|}{ Ratio of Exchange } & & & & \\ \hline 7 & & & & & & & \\ \hline 8 & & & & & & & \\ \hline 9 & & & & & & & \\ \hline 10 & Part B & & & & NCC & Portable & \\ \hline 11 & & \multicolumn{2}{|c|}{ Earnings at end of 2020} & & $29,000,000 & 12,580,000 & \\ \hline 12 & & \multicolumn{3}{|c|}{ Shares outstanding pre-merger } & 7,000,000 & 3,400,000 & \\ \hline 13 & & & & & & & \\ \hline 14 & & & & & & & \\ \hline 15 & & & & & & & \\ \hline 16 & & & & & & & \\ \hline 17 & & & & \multicolumn{2}{|c|}{ Earnings Per Share } & & \\ \hline 18 & & & & Before & After & & \\ \hline 19 & & & Stockholders & Merger & Merger & & \\ \hline 20 & & & NCC & & & & \\ \hline 21 & & & Portable & & & & \\ \hline 22 & & & & & & & \\ \hline 23 & & & & & & & \\ \hline 24 & & & & & & & \\ \hline 25 & & & & & & & \\ \hline 26 & & & & & & & \\ \hline 27 & & & & & & & \\ \hline 28 & Part C & & & & & & \\ \hline 29 & & & & & & & \\ \hline 30 & & & & & & & \\ \hline 31 & & & & & & & \\ \hline 32 & & & & & & & \\ \hline 33 & & & & & & & \\ \hline 34 & & & & & & & \\ \hline \end{tabular} pertinent financial data is included in the tables below. The applicable corporate tax rate is 21%. \begin{tabular}{|l|c|l|r|} \hline \multicolumn{4}{|c|}{ Table 3: Portable Coffee Express Balance Sheet (December 31, 2020) } \\ \hline Assets & \multicolumn{2}{|l|}{ Liabilities \& Equity } \\ \hline Cash & $3,000,000 & Current liabilities & $3,600,000 \\ \hline Accounts Receivable & 2,000,000 & Mortgages payable & 5,900,000 \\ \hline Inventory & 7,000,000 & Common stock & 14,800,000 \\ \hline Land & 7,250,000 & Retained Earnings & 9,700,000 \\ \hline Fixed assets (net) & 14,750,000 & Total Liabilities \& Equity & $34,000,000 \\ \hline Total Assets & $34,000,000 & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{3}{|l|}{ Table 4: NCC and Portable additional data (December 31, 2020) } \\ \hline Item & NCC & Portable \\ \hline \begin{tabular}{l} Earnings available for \\ common stock \end{tabular} & $29,000,000 & $12,580,000 \\ \hline \begin{tabular}{l} Number of shares of \\ Common stock \end{tabular} & 7,000,000 & 3,400,000 \\ \hline \begin{tabular}{l} Market price per share \\ ( Estimated by NCC) \end{tabular} & $43.30 & $19 \\ \hline \end{tabular}