=+LG 3 P18–11 EPS and postmerger price Sheldon Enterprises is considering a merger with Weldon Enterprises by swapping 1.5 shares of its stock for each share of Weldon stock.

Sheldon Enterprises expects its stock to sell at the same price/earnings (P/E) multiple after the merger as before merging. Data for Sheldon Enterprises and Weldon Enterprises are provided in the following table.

Item Sheldon Enterprises Weldon Enterprises Earnings available for common stock $250,000 $75,000 Number of shares of common stock outstanding 80,000 25,000 Market price per share $25 $30