Week 7 Problems i 20 5 points eBook Print References Consider the following premerger Information about...

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Week 7 Problems i 20 5 points eBook Print References Consider the following premerger Information about Firm A and Firm B: Total earnings Shares outstanding Price per share Firm A Firm B $1,700 1,000 $ 600 200 $ 31 $ 35 Assume that Firm A acquires Firm B via an exchange of stock at a price of $37 for each share of B's stock. Both A and B have no debt outstanding. a. b. 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.) What will Firm A's price per share be after the merger if the market Incorrectly analyzes this reported earnings growth (that is, the price-earnings ratio does not change)? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What will the price-earnings ratio of the postmerger firm be if the market correctly c. analyzes the transaction? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) If there are no synergy gains, what will the share price of A be after the merger? (Do d-1. not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d-2. If there are no synergy gains, what will the price-earnings ratio be? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. EPS b. Price per share C. Price-earnings times d-1. Price per share d-2. Price-earnings times Week 7 Problems i 20 5 points eBook Print References Consider the following premerger Information about Firm A and Firm B: Total earnings Shares outstanding Price per share Firm A Firm B $1,700 1,000 $ 600 200 $ 31 $ 35 Assume that Firm A acquires Firm B via an exchange of stock at a price of $37 for each share of B's stock. Both A and B have no debt outstanding. a. b. 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.) What will Firm A's price per share be after the merger if the market Incorrectly analyzes this reported earnings growth (that is, the price-earnings ratio does not change)? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What will the price-earnings ratio of the postmerger firm be if the market correctly c. analyzes the transaction? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) If there are no synergy gains, what will the share price of A be after the merger? (Do d-1. not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d-2. If there are no synergy gains, what will the price-earnings ratio be? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. EPS b. Price per share C. Price-earnings times d-1. Price per share d-2. Price-earnings times