Delta is planning on merging with Bravo. Delta will pay Bravos shareholders the current value of their equity in shares of Delta.

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?