value 700 points Consider the following premerger information about Firm A and Firm B Total earnings Shares outstanding Price per share Firm A Firm B 5 2.300 S 700 300 1.100 s 41 45 Assume that Firm A acquires Firm B via an exchange of stock at a price of $47 for each share of B's stock. Both A and B have no debt outstanding a. What will the earnings per share, EPS, of Firm A be after the merger? (Do not round intermediate calculations and round your answer to 2 decimal places, e-g 32.16.) b. What will Firm A's price per share be after the merger if the market incorrectly analyzes this reportecd earnings growth (that is, the price-eamings ratio does not change)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16) Price per share c. What will the price-earnings ratio of the postmerger firm be if the market correctly analyzes the transaction? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) PE ratio times d-1. If there are no synergy gains, what will the share price of A be after the merger? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price per share answer to 2 decimal places, e.g 32.16.) PE ratio d-2. What will the price-earnings ratio be? (Do not round intermediate calculations and round your d-3. What does your answer for the share price tell you about the amount A bid for B? Was it too high? Too low? Too high Too low