A merger between Minnie Corporation and Mickey Corporation is under consideration. The financial information for these firms is as follows:

a. On a share-for-share exchange basis, what will the postrnerger EPS be?
b. If Mickey Corporation pays a 25 percent premium over the market value of Minnie Corporation, how many shares will be issued?
c. With the 25 percent premium, what will the postrnerger EPS be?

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Minnie Mickey Corporation Corporation Total earnings Number of shares of stock outstanding EPS ... P/E ratio..... Market price per share... $800,000 $1,600,000 200,000 800,000 $4 $2 10x 20x $40 $40