Consider the following premerger information about Firm A and Firm B:

Assume that Firm A acquires Firm B via an exchange of stock at a price of $$33$ for each

share of B$\text{'}$s stock. Both Firm A and Firm B have no debt outstanding.

a$.$ What will the earnings per share $($EPS$)$ of Firm A be after the merger? $($Do not round

intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$

b$.$ What will Firm A$\text{'}$s price per share be after the merger if the market incorrectly

analyzes this reported earnings growth $($that is$,$ the price$-$earnings ratio does not

change$)?($Do not round intermediate calculations and round your answer to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ What will the price$-$earnings ratio of the postmerger firm be if the market correctly

analyzes the transaction? $($Do not round intermediate calculations and round your

answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$-1.$ If there are no synergy gains, what will the share price of Firm $A$ be after the

merger? $($Do not round intermediate calculations and round your answer to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$

d$-2.$ What will the price$-$earnings ratio be$?($Do not round intermediate calculations and

round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$-3.$ What does your answer for the share price tell you about the amount Firm A bid for

Firm B$?$ Was it too high? Too low?