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:

Apex Pinnacle

Sales (millions) $ 1,310 $ 705

Earnings after taxes (millions) $ 180 $ 100

Common shares outstanding (millions) 60 50

Share price 66 32

Earnings per share $ 3.00 $ 2.00

Dividends per share $ 1.50 $ 0.80

P/E ratio 22 16

Dividend payout ratio 50 % 44 %

Assume that there are immediate synergistic benefits of $7 million if Apex and Pinnacle merge. Determine EPS for the combined company if Apex offers a (Round your answers to three decimal places):

30 percent premium for Pinnacle $

40 percent premium for Pinnacle $

50 percent premium for Pinnacle $