2. You are given the following information: Firm B Total Earnings Firm A $65,000 $50,000 14,000 Shares Outstanding P/E r

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2 You Are Given The Following Information Firm B Total Earnings Firm A 65 000 50 000 14 000 Shares Outstanding P E R 1 (31.32 KiB) Viewed 21 times

2. You are given the following information: Firm B Total Earnings Firm A $65,000 $50,000 14,000 Shares Outstanding P/E ratio 9,000 12 18 Firm A will acquire Firm B for a four-for-five exchange (4) shares of company A for 5 shares of company B of stock. Assume there is an expected synergy of $7000 in total earnings from the acquisition, and after the acquisition the market will value the combined firm with a P/E multiple which is an average of the current p/e ratios for the two firms. for format for the combined firm and comput merger (as a percentage) th Construct the above (losses) the benefit shareholders of firm B. of the a. -1.448 b. 0.96% c. 1.4% d. 2.58 3.68 20-year