As a financial analyst at Bank of America, you are analyzing the impact of the merger and acquisition on a company's financial performance. You collected the following data. Firm A Firm T Price per share $60.00 $15.00 Total earnings $600.00 $100.00 Share outstanding 200 80 Total Value $12,000.00 1,200.00 Suppose Company A will acquire Company T. Company A will offer two new share of A for every five shares of T. a. If investors are aware that there are no economic gains from the merger, what is the price-earnings ratio of A's stock after the merger? (sample answer: 27.50) b. Now suppose that the merger really does increase the value of the combined firms by $1155, what is the price-earnings ratio of A's stock after the merger? (sample answer: 27.50) c. Now suppose that the merger really does increase the value of the combined firms by $1155, What is the final merger premium in dollar does Company A pay to Company T (sample answer: $450.50) d. Now suppose that the merger really does increase the value of the combined firms by $1155, What is the initial merger premium promised in dollar does Company A pay to Company T (sample answer: $450.50) As a financial analyst at Bank of America, you are analyzing the impact of the merger and acquisition on a company's financial performance. You collected the following data. Firm A Firm T Price per share $60.00 $15.00 Total earnings $600.00 $100.00 Share outstanding 200 80 Total Value $12,000.00 1,200.00 Suppose Company A will acquire Company T. Company A will offer two new share of A for every five shares of T. a. If investors are aware that there are no economic gains from the merger, what is the price-earnings ratio of A's stock after the merger? (sample answer: 27.50) b. Now suppose that the merger really does increase the value of the combined firms by $1155, what is the price-earnings ratio of A's stock after the merger? (sample answer: 27.50) c. Now suppose that the merger really does increase the value of the combined firms by $1155, What is the final merger premium in dollar does Company A pay to Company T (sample answer: $450.50) d. Now suppose that the merger really does increase the value of the combined firms by $1155, What is the initial merger premium promised in dollar does Company A pay to Company T (sample answer: $450.50)