Sunlite Is Considering a Merger with Velo Blind by Offering

Sunlite is considering a merger with Velo Blind by offering the equivalent of $21 a share in a stock-for-stock transaction. Sunlite's current common stock price is $30 a share and Velo's is $17. Other financial data on the two firms is as follows:
Assuming no economies of scale or synergistic benefits, what will be the post-merger earnings per share?

A) $1.47
B) $1.41
C) $1.50
D) $1.25

Correct Answer:

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