Consider the following premerger information about Firm A and Firm B. Total earnings Shares outstanding Price per share Firm A $ 2,300 1,000 $ 25 Firm B $ 700 200 $ 29 Assume that Firm A acquires Firm B via an exchange of stock at a price of $31 for each share of Bs 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 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., 32.16.) PE ratio times d-1. If there are no synergy gains what will the share price of A be 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. What will the price-earnings ratio be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) PE ratio times d-3. What does your answer for the share price tell you about the amount A bid for B? Was it too high? Too low? Too high Too low