Rearden Metal has earnings per share of $2. It has 10 million

shares outstanding and is trading at $20 per share. Rearden Metal

is thinking of buying Associated Steel, which has earnings per

share of $1.25, 4 million shares outstanding, and a price per share

of $15. Rearden Metal will pay for Associated Steel by issuing new

shares. There are no expected synergies from the transaction.

If Rearden offers an exchange ratio such that, at current preannouncement

share prices for both firms, the offer represents a 20%

premium to buy Associated Steel, then the price per share of the

combined corporation after the merger will be closest to:?

calculation steps??