Company A is acquiring Company B. The former pays 0.5 of its shares to the shareholders in the target company for each share held by them. The financial variables of the two companies are as follows:...

Company A is acquiring Company B. The former pays 0.5 of its shares to the shareholders in the target company for each share held by them. The financial variables of the two companies are as follows:

Calculate the EPS of the acquiring firm after merger. Find out the premium to be received by the shareholders of the target firm if the P/E ratio of the merged firm is 12.