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

$$

$$ Firm A Firm B

$$ Total earnings $

$1$

$,$

$600$

$$ $

$800$

$$

$$ Shares outstanding

$1$

$,$

$100300$

$$

$$ Price per share $

$43$

$$ $

$47$

$$

$$

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

$49$

$$for each share of B

$\text{'}$

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

$.$

$,$

$32\mathrm{.}16$

$.$

$)$

b

$.$

$$What will Firm A

$\text{'}$

s price per share be after the merger if the market incorrectly analyzes this reported earnings growth

$($

i

$.$

e

$.$

$,$

$$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 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

$.$

$,$

$32\mathrm{.}16$

$.$

$)$