Question: Please help me to answer this question by walking me through it, step-by-step: The following data on a merger are given: Firm AB Price per

Please help me to answer this question by walking me through it, step-by-step:

Please help me to answer this question by walking me through it,

The following data on a merger are given: Firm AB Price per share Total earnings Shares outstanding Total value Firm A $ 100 $ 500 100 $ 10,000 Firm B $ 10 $ 300 40 $ 400 $ 11,000 Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. What will be the postmerger price per share for Firm A's stock if Firm A pays in cash? A) $108 B) $110 C) $102 D) $114

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