01-07 are based on the following information Acquiring Company is considering the acquisition of Target Company in a stock for stock transaction in which Target Company would receive $50.00 for each share of its common stock The Acquiring Company does not expect any change in its priceleamings multiple after the merger Earnings available for common stock Number of shares of common stock outstanding Market price per share Acquiring Co $150.000 60,000 $60.00 QUESTION 2 2 How many new shares will be asued by Acquiring Company? Target Co $30,000 QUESTION 3 3 What is the post merger EPS of the combined company? 20,000 Using the information provided above on these two firms and showing your work, calculate the following 1 What is the share exchange ratio? $40 00 QUESTION 4 4 What is the post-merger share price of the combined company? QUESTION 5 5 If the purchase is using 100% cash and all the cash is borrowed at an annual rate of 85%, what is post-merger EPS of the combined company, assuming the tax rate is 40%? QUESTION 6 6 If the purchase is using a combination of stock and cash, with each target share receives 05 share of acquiring company stock and $20 cash All the cash is borrowed at an annual rate of 8%, what is post merger total earnings of the combined company, assuming the tax rate is 40%? QUESTION 7 7. Given the deal structure in Of, what is post merger EPS of the combined company, assuming the tax rate is 40%