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Willow Enterprises is considering the acquisition of Steadfast Corp. in a stock swap transaction. Currently, Willow's stock is selling for $49 per share. Although Steadfast's

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Willow Enterprises is considering the acquisition of Steadfast Corp. in a stock swap transaction. Currently, Willow's stock is selling for $49 per share. Although Steadfast's shares are currently trading at $30 per share, the rm's asking price is $60 per share. a. If Willow accepts Steadfast's terms, what is the ratio of exchange? b. If Steadfast has 19,000 shares outstanding, how many new shares must Willow issue to consummate the transaction? c. If Willow has 170,000 shares outstanding before the acquisition, and earnings for the merged company are estimated to be $500,000, what is the EPS for the merged company? a. If Willow accepts Steadfast's terms, the ratio of exchange is . (Round to six decimal places.) b. If Steadfast has 19,000 shares outstanding, the number of new shares Willow must issue to consummate the transaction is shares. (Round to the nearest whole number.) c. The EPS for the merged company is $ . (Round to the nearest cent.)

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