Firm A has 196,000 shares of stock outstanding, each with a market price of $10 per share. Firm B has 150,000 shares of stock outstanding, each with a market value of $25 per share. Firm B have agreed to take over Firm A using an exchange ratio will be 3:2 meaning that firm A stockholders will receive 3 share of firm B for every 2 shares they currently hold in firm A. The earnings of the combined firm is $2,500,000. What is the EPS of the combined firm? Select one: a. $5.63 b.  $7.80 c. $5.80 d. $6.63

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