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Please solve the below including the formula in excel Consider the following information for two all-equity firms, A and B: Firm A Firm B Total

Please solve the below including the formula in excel

Consider the following information for two all-equity firms, A and B:
Firm A Firm B
Total earnings $3,000 $1,100
Shares outstanding 600 400
Price per share $70 $15
Firm A is acquiring Firm B by exchanging 100 of its new shares for all the shares in B.
1. What is the cost of the merger if the merged firm is worth $63,000? (the number of shares of the merged firm is 600 + 100 =700 shares)
2. What will happen to the Merged Firm's Earning Per Share (EPS)?
3. What will happen to the Merged Firm's Price Earnings Ratio (PER)?
Answers
1/
Value of Merged firm
# of share of Merged firm
Value of share of Merged Firm
# of Exchanged shares
Cost of the merger
2/
Earning Firm A
Earning Firm B
Total Earning
# of share of Merged firm
EPS
3/
Value of share of Merged Firm
EPS
PER

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