FIN 6320-Consider the following pre-merger information about Firm A and Firm B
June 7th, 2024
Consider the following pre-merger information about Firm A and Firm B:Firm AFirm BTotal earnings$2,100$750Shares outstanding900300Price per share$60$12Assume that Firm A acquires Firm B via an exchange of stock at a price of $13 for each share of B’s stock. Both A and B have no debt outstanding.What will the earnings per share, EPS, of Firm A be after the merger? AND What will be the share price of A be after the merger if there are no synergy gains? Please show your work.