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The shareholders of Flannery Company have voted in

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The shareholders of Flannery Company have voted in

 

The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation. Information about each firm is given here:
Flannery Stultz
  Price–earnings ratio 13.2 37
  Shares outstanding 99,000 370,000
  Earnings $ 230,000 $ 920,000
Flannery’s shareholders will receive one share of Stultz stock for every three shares they hold in Flannery.
a-1. What will the EPS of Stultz 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 ratio

 

b. What must Stultz feel is the value of the synergy between these two firms? (Do not round intermediate calculations.)

 

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The shareholders of Flannery Company have voted in

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The shareholders of Flannery Company have voted in

 

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