1. Excalibur Enterprises is a merger target. King Arthur Corp. has sufficient but unissued shares of stock to carry out the proposed merger. Listed below is financial data on the involved corporations: Item King Arthur Excalibur Sales $500,000,000 $50,000,000 Earnings Available for Common Stock $40,000,000 $3,740,000 # of shares of Common Stock Outstanding 5 million 1,000,000 Market Price Per Share $64 $24 Dividends Per Share $3.00 $1.00 Earnings Per Share $8.00 $3.74 a. Calculate the exchange ratio if King Arthur offers Excalibur stockholders a 20% premium over Excalibur's current market price. b. What is the effective price of Excalibur as a result of the merger? (Based on the merger what is the $ value of a share of Excalibur stock? C. What will be the post-merger earnings per share if the exchange ratio is .4 shares of Excalibur for each share of King Arthur? Assume post-merger earnings are $43,740,000