ABC Enterprises is considering the acquisition of ZXY Corp. in a stock swap transaction. Currently, ABC stock is selling for RM45 per share. Although ZXY shares are currently trading at RM30 per share, the firms asking price is RM60 per share.

1) If ABC accepts ZXY terms, what is the ratio of exchange?

2) If ZXY has 15,000 shares outstanding, how many new shares must ABC issue to consummate the transaction?

3) If ABC has 110,000 shares outstanding before the acquisition, and earnings for the merged company are estimated to be RM450,000, what is the EPS for the merged company?