The McPherson Company is considering acquiring the McAlester Company. Selected financial data for the two companies are shown here:

McPherson McAlester

Sales $($millions$)$ $ $300$ $ $60$

Earnings after taxes $($millions$)$ $ $30$ $ $2\mathrm{.}80$

Common shares outstanding $($millions$)101$

Earnings per share $ $3\mathrm{.}00$ $ $2\mathrm{.}80$

Dividends per share $ $1\mathrm{.}00$ $ $0\mathrm{.}60$

Common stock $($price per share$)$ $ $50$ $ $18$

Both companies have $40$ percent marginal tax rates. Assume that no synergistic benefits are expected.

Calculate the McPherson Company$$s postmerger earnings per share if the McAlester stockholders accept an offer of $$20$ a share in a stock$-$for$-$stock exchange.

$($The expression stock$-$for$-$stock exchange means that the common stock of one company is exchanged for the common stock of another company.$)$ Do not round intermediate calculations. Round your answer to three decimal places.

$

Recalculate Part a$,$ assuming that the McPherson common stock price is $$55$ a share. Do not round intermediate calculations. Round your answer to three decimal places. $($All other figures remain constant.$)$

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Calculate McPherson$$s earnings per share if the McAlester stockholders accept one $$4$ convertible preferred share $($stated value, $$100)$ for each $5$ shares of McAlester stock held. Round your answer to three decimal places.

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Calculate McPherson$$s earnings per share if each group of $50$ shares of McAlester stock is exchanged for one $10$ percent, $$1,000$ debenture. Round your answer to three decimal places.

$

Compare the premerger expected dividend return on the McAlester stock with the expected postmerger dividends or interest available with the exchanges described in Parts a$,$ c$,$ and d$.($Undoubtedly$,$ at the time of acquisition, McPherson would have pointed out these expected increases in yield to the McAlester stockholders.$)$ Assume that an investor initially holds $150$ shares of McAlester stock. Round your answers to the nearest cent.

Pre$-$merger dividend amount: $

Post merger expected amount $($Part a$)$: $

Post merger expected amount $($Part c$)$: $

Post merger expected amount $($Part d$)$: $