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EPS and postmerger price Data for Henry Company and Mayer Services are given in the following table, Henry Company is considering merging with Mayer by
EPS and postmerger price Data for Henry Company and Mayer Services are given in the following table, Henry Company is considering merging with Mayer by swapping 1.19 shares of its stock for each share of Mayer stock. Henry Company expects its stock to sell at the same pricelearnings (P/E) multiple after the merger as before merging. a. The ratio of exchange in market price is (Round to two decimal places.) b. The EPS for Henry Company is $. (Round to the nearest cent.) The EPS for Mayer Services is $ (Round to the nearest cent.) The P/E for Henry Company is (Round to two decimal places.) The P/E for Mayer Services is (Round to two decimal places.) c. The P/E used to purchase Mayer Services is (Round to two decimal places.) d. The post-merger EPS is $. (Round to the nearest cent.) e. The expected market price per share of the merged firm is $ (Round to the nearest cent.) - Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Item Henry Company Mayer Services Earnings available for common stock $220,000 $85,000 Number of shares of common stock outstanding 90,000 15,000 Market price per share $53 $102
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