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Consider the following premerger information about Firm A andFirm B:Firm AFirm B Total earnings$2,000$1,000 Shares outstanding1,100250 Price per share$39$43Assume that Firm A acquires Firm B via an exchange of stock at aprice of $45 for each share of B's stock. Both Firm A and Firm Bhave no debt outstanding.a.What will the earnings per share (EPS) of Firm A be after themerger? (Do not round intermediate calculations and roundyour answer to 2 decimal places, e.g., 32.16.)b.What will Firm A's price per share be after the merger if themarket incorrectly analyzes this reported earnings growth (that is,the price-earnings ratio does not change)? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)c.What will the price-earnings ratio of the postmerger firm be ifthe market correctly analyzes the transaction? (Do notround intermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)d-1.If there are no synergy gains, what will the share price ofFirm A be after the merger? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)d-2.What will the price-earnings ratio be? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)d-3.What does your answer for the share price tell you about theamount Firm A bid for Firm B? Was it too high? Too low?