Calculate the post-merger earnings per share

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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.

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

Reference no: EM131122564

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