DEF stockholders are paid the current market value of their firm in the form of ABC stock. Both firms are 100% equity-financed. The total earnings of the combined firm are $77,000. 
What is the price per share after the merger?
A) $15.00
B) $17.50
C) $20.00
D) $22.50
E) $25.00
Correct Answer:
Verified
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