Given the following case, answer questions 18 and 20 below:

Group Co currently has 4,000 shares outstanding each sold for $100, whereas, Intel Inc has 3,000 shares outstanding each sold for $50. The earnings per share for Group Co and Intel Inc is $11 per share. Group Co decides to acquire Intel Inc by offering three new shares of Group Co for every six shares of Intel Inc. Assume that the merger increases the value of the combined firms by $30,000.

18. What is the Earning Per Share for Group Co. after merger? *

a. $11 per share

b. $12 per share

c. $13 per share

d. $14 per share

e. None of the above

19. What is the price earnings ratio of Group Co. after the merger? *

a. 5.35

b. 7.14

c. 7.38

d. 6.31

e. None of the above

20. What is the cost of the merger? *

a. Zero

b. $2,000

c. $7,000

d. $4,000

e. None of the above