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The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt Corporation....

The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt Corporation. Information about each firm is given here:

Jolie Pitt
  Price–earnings ratio 13.2 22
  Shares outstanding 99,000 250,000
  Earnings $ 220,000 $ 1,000,000

   

Jolie's shareholders will receive one share of Pitt stock for every three shares they hold in Jolie.

1

What will the EPS of Pitt be after the merger? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

  EPS ???????$

a-2

What will the PE ratio be if the NPV of the acquisition is zero? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

PE ?????????

  
b.

What must Pitt feel is the value of the synergy between these two firms?

  

  Synergy value ????????$
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