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ONLY ANSWER D! the answer is not 2064.52! please show work 200 As a financial analyst at Bank of America, you are analyzing the impact

ONLY ANSWER D! the answer is not 2064.52! please show work
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200 As a financial analyst at Bank of America, you are analyzing the impact of the merger and acquisition on a company's financial performance. You collected the following data. FirmA Fimm T Price per share $70.00 $10.00 Total earnings $600.00 $100.00 Share outstanding 80 Total Value $14,000.00 $ 800.00 Suppose Company A will acquire Company T. Company A will offer three new share of A for every five shares of T. a. If investors are aware that there are no economic gains from the merger, what is the price-earnings ratio of A's stock after the merger? (sample answer: 27.50) Now suppose that the merger really does increase the value of the combined firm by $3500, please answer part b, c, and d b. what is the price-earnings ratio of A's stock after the merger? (sample answer: 27.50) c. what is the final merger premium in dollar does Company A pay to Company T (sample answer: $450.50) d. what is the initial merger premium promised in dollar does Company A pay to Company T (sample answer $450.50)

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