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

	Firm A		Firm B
Total earnings	$	2,000		$	1,000
Shares outstanding		1,100			250
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.)
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.)
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.)
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.)
d-2.	If there are no synergy gains, what will the price-earnings ratio be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)