Assume that there are no synergistic benefits

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Apex Corporation is considering the purchase of Pinnacle Company in a stock-for-stock exchange. Selected data on the two companies are shown in the following table:

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Assume that there are no synergistic benefits as the result of the merger. Determine EPS for the combined company if Apex offers a

a. 20 percent premium for Pinnacle

b. 40 percent premium for Pinnacle

c. 50 percent premium forPinnacle

Reference no: EM131122570

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