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Apex Corporation is considering the purchase of Pinnacle Company in a stockforstock exchange. Selected data on the two companies are shown in the following table: Apex Pinnacle Sales {millions} $1,150 $635 Earnings after taxes [millions] $ 150 $ 80 Common shares outstanding {millions} 50 40 Share price 66 36 Earnings per share $ 3.00 $ 2.00 Dividends per share $ 1.50 $ 0.90 P;'E ratio 22 18 Dividend payout ratio 50% 45% Assume that there are no synergistic benefits as the result of the merger. Determine EPS for the combined company if Apex offers a {Round your answers to three decimal places]: a. 30 percent premium for Pinnacle S b. 50 percent premium for Pinnacle S c. 70 percent premium for Pinnacle S