a)
To calculate: The EPS (Earnings per Share) of Firm A after a merger
Introduction:
The EPSis the part of the profit of a firm that is allocated to every outstanding share of common stock. It indicates the profitability of the company.
b)
To calculate: The price per share for Firm A, if the ratio of price-earnings does not change.
Introduction:
The EPSis the part of the profit of a firm that is allocated to every outstanding share of common stock. It indicates the profitability of the company.
c)
To calculate: The price-earnings ratio after the merger, assuming that the market correctly analyzes the transaction.
Introduction:
The EPSis the part of the profit of a firm that is allocated to every outstanding share of common stock. It indicates the profitability of the company.
d)
To calculate: The share price of Firm A after the merger, and the price-earnings ratio.
Introduction:
The EPSis the part of the profit of a firm that is allocated to every outstanding share of common stock. It indicates the profitability of the company.
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