Buyer Cafe is attempting to acquire the Target Club. Certain financial data on these corporations are summarized in the following table.   Item Buyer Cafe Target Club Earnings Available for common stock $20,000 $8,000 Number of shares of common stock outstanding   20,000    4000 Market price per share         $12      $24 EPS          $1       $2           Buyer’s Cafe has sufficient authorized but unissued shares to carry out the proposed merger.            If the ratio of exchange is 1.8, what will be the new earnings per share (EPS) of the merged firm?

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