Castles in the Sand currently sells at a price-earnings multiple of 16. The firm has 2 million shares outstanding and sells at a price per share of $60. Firm Foundation has a P/E multiple of 12, has 1 million shares outstanding, and sells at a price per share of $30. 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 millions. d. What should be the P/E 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 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 intermediate 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 millions. a. Earnings per share b. Price per share c. Value of stock million d. P/E e. Price per share f. Castles in the Sand (CS) million f. Firm Foundation (FF) million