Acquiring Company is considering the acquisition of Target Company in a share-for-share transaction in which Target Company would receive $50.00 for each share of its common stock. Acquiring Company does not expect any change in its P/E multiple after the merger. Acquiring Co. Target Co. Earnings available for common stock $150,000 $30,000 Number of shares of common stock outstanding 60,000 20,000 Market price per share $60.00 $40.00 Using the preceding information about these two firms and showing your work, calculate the following:

a. Purchase price premium.

Answer : 25%

e. Postmerger EPS of the combined companies.

Answer: $2.35

g. Postmerger share price.

Answer : $56.40, compared with $60.00 premerger

I need the calculation of each. Thank you.