16 Firm A is merging with Firm B and will pay the shareholders of Firm B the current value of their stock in shares of Firm A. Information on the two firms is as follows: Firm A $ 30.50 Firm B $ 21.50 2 points Stock price Shares outstanding Earnings 40,500 5,500 $50,500 $ 7,000 eBook The combined firm will have after-merger earnings of $57,500. No incremental value is being created by this merger. Firm A has a pre-merger earnings per share of and post-merger earnings per share of Print References Multiple Choice $1.38; $1.30 o $1.38; $1.41 $1.25, $1.41 o $1.25; $1.30