Prior to a merger you have the following data on Firm A and Firm B. Firm A Firm B Total Earnings 2100 700 Shares Outstanding 900 300 Price per share $ 60 $ 17 1.Assume that Firm A acquires Firm B via an exchange of stock at a price of $18 per share of Firm B's stock. Both Firm A and Firm B have no outstanding debt. What will the earnings per share, EPS, of Firm A post-merger? 2. Assume that Firm A acquires Firm B via an exchange of stock at a price of $18 per share of Firm B's stock. Both Firm A and Firm B have no outstanding debt. What will Firm A's price per share be after the merger if the market attributes the same price-earnings to Firm A has they had prior? 3. Assume that Firm A acquires Firm B via an exchange of stock at a price of $18 per share of Firm B's stock. Both Firm A and Firm B have no outstanding debt. What will be the price earnings ratio of the post-merger firm be in correctly analyzed in this transaction?

4. Assume that Firm A acquires Firm B via an exchange of stock at a price of $18 per share of Firm B's stock. Both Firm A and Firm B have no outstanding debt. If the merger has no synergies, what will be the share price and price earnings ratio of A post-merger?