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01-07 are based on the following information Argilning Company is conedering the acquisition of Target Company in a stock for stock Mansaction in which Target

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01-07 are based on the following information Argilning Company is conedering the acquisition of Target Company in a stock for stock Mansaction in which Target Company would receive $50,00 for each share of its common stock .The Acquiring Company does not expect any change in its price earrings multiple after the merger Acquiring Ca Target Co Earnings available for $150.000 $30,000 common stock Number of shares of" 20.000 common stock outstanding Market price per share $50 00 540 00 Using the information provided above on these two forms and showing your work, calculate the following T What is the there exchange ratio? QUESTION 2 2 How many men shares wl be asugd by Acquiring Company? QUESTION 3 3 What is the post merger EPS of the combined company?QUESTION 4 What is the post merger share price of the combined company ? QUESTION S 5. If the purchase is using 100%% cash and all the cash is borrowed at an annual rate of at what is post merger EPS of the combined company assuming the tax rate is 40%? QUESTION 6 5.If the purcrime is using a combination of stock and cash, with each target share receives 0 5 share of acquiring company stock and $20 cash All the cash is borrowed at an annual rate of IN what post merger total earnings of the combined company assuming the tax rate is 4017. QUESTION 7 7 Grett the deal sinature in CO. what is post merger EPS of the combined company, assuming to tax rate is 40%2

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