Marla's Cafe is attempting to acquire the Victory Club. Certain financial data on these corporations are summarized in the following 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 Marla's Cafe Victory Club Earnings available for common stock $40,000 $5, 000 Number of shares of common stock outstanding 50, 000 6,000 Market price per share $15 $25 Marla's Cafe has sufficient authorized but unissued shares to carry out the proposed merger. If the ratio of exchange is 2, what will be the earnings per share (EPS) based on the original shares of each firm?

The EPS for Marla's original shareholders after the merger is ?. (Round to three decimal places.)

The EPS for Victory's original shareholders after the merger is ?. (Round to three decimal places.)

Table :

Earnings available for common stock	$40,000		$5,000
Number of shares of common stock outstanding	50,000		6,000
Market price per share $15 and $25