-Which of the Following Would Be True Concerning the EPS

Multiple Choice

$$\begin{array} { l r r } &\underline{ \text { Company A }} &\underline{ \text { Company B }} \\\text { Total earnings } & \$ 2,000,000 & \$ 1,000,000 \\\text { Number of shares outstanding } & 400,000 & 100,000 \\\text { Earnings per share } & \$ 5.00 & \$ 10.00 \\\text { Price/earnings } & 6 \mathrm { X } & 3 \mathrm { X } \\\text { Market price/share } & 30.00 & \$ 30.00\end{array}$$
-Which of the following would be true concerning the EPS of Company A.in 5 years? Company A's EPS would be:

A) higher due to the merger.
B) the same with or without the merger.
C) lower without the merger.
D) lower with the merger.