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1 The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation. Information about each firm is given here: 1
1 The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation. Information about each firm is given here: 1 Flannery Stultz points 10 21 Skipped Price-earnings ratio Shares outstanding Earnings 75,000 240,000 $210,000 $960,000 eBook Print Flannery's shareholders will receive one share of Stultz stock for every three shares they hold in Flannery. References 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.) 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.) b. What must Stultz feel is the value of the synergy between these two firms? (Do not round intermediate calculations.) a-1. EPS a-2. PE b. Synergy value
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