Hello. I am looking for homework help in Corporate Finance.#5

E '9' a ..II 76% i 18:06 Consider the following premerger information about Firm A and Firm B: Firm A Firm B Total earnings $ 2,500 3 1,000 Shares outstanding 900 200 Price per share $ 23 $ 27 l Assume that Firm A acquires Firm B via an exchange of stock at a price of $29 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.) EPS $ 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.) Price per share $ 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.) Price-earnings times 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.) E' 6: ..I 76%318106 earnings ratio oes not c ange . Io not roun- Interme- late ca cu atlons an roun- your answer to -ecima p aces, e.g., . -. Price per share $ c. What will the priceearnings ratio of the postmerger rm be ifthe market correctly analyzes the transaction? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Priceearnings times d-1. lfthere are no synergy gains, what will the share price ofA be after the merger? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price per share $ d-2. If there are no synergy gains. what will the priceearnings ratio be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Priceearnings times References Worksheet Difculty: 2 Intermediate Section: 211 The Legal Forms of Acquisitions