How do you calculate combined EPS in an A/D analysis: step-by-step formula?

Start with acquirer net income. Add target net income. Add after-tax synergies. Subtract after-tax incremental interest expense, lost interest income, PPA amortization, and other deal costs included in run-rate EPS. Adjust taxes. Divide combined net income by pro-forma diluted shares, including new shares issued as consideration. Compare combined EPS with acquirer standalone EPS.