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$.,32\mathrm{.}16.)$

d$-3.$ What does your answer for the share price tell you about the amount A bid for B$?$ Was it too high or too low?