B2. (Earnings per share) Firm A has 1,000,000 shares outstanding that are trading at $25 each. Firm B has 2,000,000 shares outstanding that are trading at $50 each. Firm A earns $2.50 per share, and firm B earns $4.00 per share. a. Calculate each firm's price-earnings ratio. b. Suppose firm B acquires firm A in a stock-for-stock swap based on current market val- ues. What happens to firm B's earnings per share? Does that mean that firm B's share- holders are better off as a result of the merger? Explain