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Firm B price per share 20 total earnings 200 shares outstanding 200 market value $4000 Efficiency Gains total earnings 600 market value $8000 Firm AB

Firm B price per share 20 total earnings 200 shares outstanding 200 market value $4000

Efficiency Gains total earnings 600 market value $8000

Firm AB combined

What would be the change in earnings per share for Firm A if the merger was paid in cash?

a. 0

b. 1.20

c. 1.60

d. 2.05

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