Apex Corporation is considering the purchase of Pinnacle Company in a stock-for-stock exchange. Selected data on the two companies are shown in the following table:

Assume that there are immediate synergistic benefits of $4 million if Apex and Pinnacle merge. Determine EPS for the combined company if Apex offers a (Round your answers to three decimal places):

Apex $1,170 $ 160 40 72 Sales (millions) Earnings after taxes (millions) Common shares outstanding (millions) Share price Earnings per share Dividends per share P/E ratio Dividend payout ratio Pinnacle $215 $ 30 10 39 $ 3.00 $ 1.20 13 40% 4.00 2.00 18 50% a. 10 percent premium for Pinnacle $ b. 30 percent premium for Pinnacle $ C. 50 percent premium for Pinnacle $