Earnings per share be after the merger

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Delta is planning on merging with Bravo. Delta will pay Bravo´s shareholders the current value of their equity in shares of Delta. Delta currently has 5,000 shares of equity outstanding at a market price of €40 a share. Bravo has 2,000 shares outstanding at a price of €20 a share. The after-merger earnings will be €10,500. What will the earnings per share be after the merger?

a.  €1.61.

b.  €1.65.

c.  €1.75.

d.  €1.81.

e.  €1.86.

Reference no: EM131850960

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