PLS NEED ANSWER ASAP!! TEST**

As a financial analyst at Bank of America, you are analyzing the impact of the merger and acquisition on a companys financial performance. You collected the following data.

Suppose Company A will acquire Company T. Company A will offer three new share of A for every five shares of T.

a. If investors are aware that there are no economic gains from the merger, what is the price-earnings ratio of A's stock after the merger?______ (sample answer: 27.50)

Now suppose that the merger really does increase the value of the combined firm by $3500, please answer part b, c, and d b. what is the price-earnings ratio of A's stock after the merger? _____________(sample answer: 27.50) c. what is the final merger premium in dollar does Company A pay to Company T _______________(sample answer: $450.50) d. what is the initial merger premium promised in dollar does Company A pay to Company T _____________(sample answer: $450.50)

Price per share Total earnings Share outstanding Total Value Firm A $70.00 $600.00 200 $14,000.00 Firm T $10.00 $100.00 80 $ 800.00