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Zeke Industries is considering the acquisition of Tammy Inc. in a stock-for-stock exchange. Assume no immediate synergistic benefits are expected. Selected financial data on the

Zeke Industries is considering the acquisition of Tammy Inc. in a stock-for-stock exchange. Assume no immediate synergistic benefits are expected. Selected financial data on the two companies are shown below: Zeke Tammy Sales (millions) $480, $90 Net income (millions) $38 $10.4 Common shares outstanding (millions) 10 2.1 Earnings per share $3.80 $4.95 Common stock (price per share) $45.60 $74.25 Calculate Zeke's postmerger EPS if the Tammy shareholders accept an offer of $95.76 a share in a stock-for-stock exchange.

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