Castles in the Sand currently sells at a price$-$earnings multiple of $20.$ The firm has $2$ million shares outstanding and sells at a price per

share of $$50.$ Firm Foundation has a P$/$E multiple of $10,$ has $1$ million shares outstanding. and sells at a price per share of $$25.$

If Castles acquires the other firm by exchanging one of its shares for every two of Firm Foundation, what will be the earnings per

share of the merged firm?

Note: Do not round Intermedlate calculatlons. Round your answer to $2$ declmal places.

b$.$ What will be the price per share for Castle?

Note: Do not round Intermedlate calculations.

c$.$ What would be Firm Foundation's value of stock post merger?

Note: Do not round Intermedlate calculatlons. Enter your answer In mllllons.

d$.$ What should be the P$/$E of the new firm if the merger has no economic gains?

Note: Do not round Intermedlate calculatlons. Round your answer to $2$ declmal places.

e$.$ Calculate Castles' price per share if the market does not realize that the P$/$E ratio of the merged firm ought to differ from Castles'

premerger ratio.

Note: Do not round Intermedlate calculations.

f$.$ How are the gains from the merger split between shareholders of the two firms if the market is fooled as in part $($e$)?$

Note: Enter your answers In mllllons.