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Consider the following premerger information about Firm A and Firm B: Firm A Firm B Total earnings $2,100 $750 Shares outstanding 900 300 Price per
Consider the following premerger information about Firm A and Firm B: Firm A Firm B Total earnings $2,100 $750 Shares outstanding 900 300 Price per share $60 $12 Assume that Firm A acquires Firm B via an exchange of stock at a price of $13 for each share of B's stock. Both A and B have no debt outstanding. What will the earnings per share, EPS, of Firm A be after the merger?
A. $2.97
B. $2.95
C. $2.90
D. $2.91
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