Wilson Industries is considering the acquisition of the Blanchard Company in a stock-for- stock exchange. Selected financial data for the two companies are shown next. An immediate synergistic earnings benefit of $1 million is expected in this merger, due to cost savings.

Calculate the post-merger earnings per share if the Blanchard shareholders accept an offer of $22 per share in a stock-for-stockexchange.

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Wilson $150 $ 25 Blanchard $30 $ 3.5 Sales (millions) Earnings after taxes (millions) Common shares outstanding (millions) Earnings per share Dividends per share $ 3.125 $ 1.50 $ 40 $ 1.75 $ 0.75 $19.50 ommon stock price per share