irm A has 196,000 shares of stock outstanding, each with a market price of $10 per share. Firm B has 150,000 shares of stock outstanding, each with a market value of $25 per share. Firm B have agreed to take over Firm A using an exchange ratio will be 3:2 meaning that firm A stockholders will receive 3 share of firm B for every 2 shares they currently hold in firm A. The earnings of the combined firm is $2,500,000. What is the EPS of the combined firm?

Select one:

a.

$6.63

b.

$7.80

c.

$5.80

d.

$5.63