3. Willow Enterprises is considering the acquisition of Steadfast Corp. in a stock swap transaction. Currently, Willow's stock is selling for $42 per share. Although Steadfast's shares are currently trading at $31 per share, the firm's asking price is $62 per share. a. If Willow accepts Steadfast's terms, what is the ratio of exchange? b. If Steadfast has 21,000 shares outstanding, how many new shares must Willow issue to consummate the transaction? c. If Willow has 210,000 shares outstanding before the acquisition, and earnings for the merged company are estimated to be $360,000, what is the EPS for the merged company? a. If Willow accepts Steadfast's terms, the ratio of exchange is (Round to six decimal places.) b. If Steadfast has 21,000 shares outstanding, howthe number of new shares Willow must issue to consummate the transaction is shares. (Round to the nearest whole number.) c. The EPS for the merged company is $ (Round to the nearest cent.) 4. Ratio of exchange and EPS Marla's Cafe is attempting to acquire the Victory Club. Certain financial data on these corporations are summarized in the following table. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Item Marla's Cafe Victory Club Earnings available for common stock $45,000 $6,500 Number of shares of common stock outstanding 30,000 6,000 Market price per share $10 $32 Marla's Cafe has sufficient authorized but unissued shares to carry out the proposed merger. If the ratio of exchange is 16, what will be the earnings per share (EPS) based on the original shares of each firm? The EPS for Marla's original shareholders after the merger is $ (Round to three decimal places) The EPS for Victory's original shareholders after the merger is $ (Round to three decimal places.)