The owners of Yip Company common equity and Ling Corporation common equity approved a merger. Information about each firm is given here:

Yip Ling Price-earnings ratio 5 30 Shares outstanding 60,000 300,000 Earnings $250,000 $850,000

The Yip common equity owners will receive one share of Ling stock for every five shares they hold in Yip. What are the expected EPS of the combined company?

Question 6 options:

	$3.44
	$1.83
	$3.53
	$2.51
	$3.06