Consider Two Firms,Big Company and Little Enterprises,both with Earnings of $6

Multiple Choice

Consider two firms,Big Company and Little Enterprises,both with earnings of $6 per share and 2 million shares outstanding.Big is a mature company with few growth opportunities and a stock price of $56 per share.Little is a new firm with much higher growth opportunities and a stock price of $72 per share.Assume Little acquires Big using its own stock and the takeover adds no value.What is the change in Little's earnings per share as a result of the acquisition?

A) $3.86
B) -$2.63
C) $0.75
D) $0
E) $6.00