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

Firm A Firm B

Total earnings $2,100 $750

Shares outstanding 900 300

Price per share $60 $12

Assume that Firm A acquires Firm B via an exchange of stock at a price of $13 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? (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 (i.e., the price-earnings ratio does not change)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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? (Round your answer to 2 decimal places, e.g., 32.16.)
d-2.	What will the price-earnings ratio be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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?