Castles in the Sand currently sells at a price-earnings multiple of 20 . The firm has 2 malion shares outstanding and sells at a price per thare of $20. Firm Foundation has a PiE multiple of 10 . has 1 million shares outstanding, and sells at a price per share of $10. a. 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 intermediate calculations. Round your answer to 2 decimal places. b. What will be the price per share for Castle? Note: Do not round intermediate calculations. c. What would be Firm Foundation's value of stock post merger? Note: Do not round intermediate calculations. Enter your answer in milions. d. What should be the PiE of the new firm if the merger has no economic gains? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. e. Calculate Casties' 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 intermediate calculations. 1. How are the gains from the merger split between shoreholders of the two firms if the market is fooled as in part (e)? Note: Enter your answers in millions