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

Firm A Firm B

Total earnings$2,100$600

Shares outstanding1,100300

Price per share$39$43

Assume that Firm A acquires Firm B via an exchange of stock at a price of $45 for each share of B's stock. Both A and 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., 32.16.)

EPS$

b.What will Firm A'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., 32.16.)

Price per share$

c.What will the priceearnings 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., 32.16.)

Priceearningstimes

d-1.If there are no synergy gains, what will the share price ofAbe after the merger?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Price per share$

d-2.If there are no synergy gains, what will the priceearnings ratio be?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Priceearningstimes