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18. The shareholders of Bread Company have voted in favor of a buyout offer from Butter Corporation. Information about each firm is given here: Price-earnings

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18. The shareholders of Bread Company have voted in favor of a buyout offer from Butter Corporation. Information about each firm is given here: Price-earnings ratio Shares outstanding Bread 7.26 67,000 Butter 21.78 201,000 Earnings $ 200,000 $ 400,000 Bread's shareholders will receive one share of Butter stock for every two shares they hold in Bread. What will the EPS of Butter be after the merger? What will the PE ratio be if the NPV of the acquisition is zero? If Firm T is willing to be acquired for $30 per share in cash, what will the price per share of the merged firm be

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