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: Sales (millions) Apex $1,170 Pinnacle $475 Earnings after taxes (millions) $ 160 $ 60 Common shares outstanding (millions) 40 20 Share price 64 27 Earnings per share 4.00 $ 3.00 Dividends per share $ P/E ratio Dividend payout ratio 2.20 16 55% $ 1.50 9 50% Assume that there are no synergistic benefits as the result of the merger. Determine EPS for the combined company if Apex offers a (Round your answers to three decimal places): a. 10 percent premium for Pinnacle b. 20 percent premium for Pinnacle $ c. 40 percent premium for Pinnacle $