6.Consider the following premerger information about Firm A and Firm B: Firm A Firm B Total earnings $ 2,300 $ 700 Shares outstanding 1,000 200 Price per share $ 25 $ 29 Assume that Firm A acquires Firm B via an exchange of stock at a price of $31 for each share of B's stock. Both A and B have no debt outstanding. a. What will the earnings per share, EPS, of Firm A be after the merger? b. What will Firm A's price per share be after the merger if the market incorrectly analyzes this reported earnings growth (i.e., the price-earnings ratio does not change)? c. What will the price-earnings ratio of the postmerger firm be if the market correctly analyzes the transaction? d-1. If there are no synergy gains, what will the share price of A be after the merger? d-2. What will the price-earnings ratio be? d-3. What does your answer for the share price tell you about the amount A bid for B? Was it too high or too low?