A merger between Minnie Corporation and Mickey Corporation is under consideration. The financial information for these firms is as follows:

	Minnie Corporation		Mickey Corporation
Total earnings		$800,000		$1,600,000
Number of shares of stock outstanding		200,000		800,000
EPS		$4		$2
P/E ratio		10X		20X
Market price per share		$40		$40

a. On a share-for-share exchange basis, what will the postmerger EPS be? (Round the final answer to 2 decimal places.)

Postmerger earnings per share $

b. If Mickey Corporation pays a 25 percent premium over the market value of Minnie Corporation, how many shares will be issued?

Shares issued $

c. With the 25 percent premium, what will the postmerger EPS be? (Round the final answer to 2 decimal places.)

Postmerger earnings per share $