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Question 22 of 40 1 points Question 22 Firm A buys Firm Bin a stock-for-stock transfer based on Firm A's offer of $70 per share

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Question 22 of 40 1 points Question 22 Firm A buys Firm Bin a stock-for-stock transfer based on Firm A's offer of $70 per share of Firm B. Assume there are no synergistic benefits to the merger Firm A Firm B Present Earings $50 milion $40 million Shares 5 million 10 milion EPS $ 10 $4 Market Price of Stock $140 $ 40 P/E Ratio 10 The post-merger EPS for the former stockholders in B. per an equivalent former share of firm B held, is: a $18.00 b. 56.00 $9.00 d. 14.50

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