Question: Firm X has $ 1 , 2 5 0 in total earnings with 7 5 0 shares outstanding at a market price per share of
Firm X has $ in total earnings with shares outstanding at a market price per share of $ Firm Y has $ in total earnings with shares outstanding at $ per share. Assume Firm X acquires Firm Y via an exchange of stock at a price of $ for each share of Firm Ys stock. Both Firm X and Firm Y have no debt outstanding. What will Firm Xs earnings per share be after the merger?
Multiple Choice
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