Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the

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Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A. Firm A currently has 2,300 shares of stock outstanding at a market price of $20 a share. Firm B has 1,800 shares outstanding at a price of $15 a share. The after-merger earnings will be $6,500. What will the earnings per share be after the merger?

a.$1.78

b.$1.87

c.$1.67

d.$1.83

e.$1.92

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Posted Date: May 20, 2024 01:05 AM

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Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the

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