3. Leveraged buyout. What are the potential sources of value creation and value destruction in a leveraged buyout when compared with an acquisition? Mergers and price-to-earnings ratios. Maltonese Inc. has five million shares outstanding selling at $60 each, and its price to-earnings ratio (P/E) is 10. Targeton Corp. has 1.5 million shares outstanding with a market price of $30 each, and its PER ratio is 6. Maltonese is considering the acquisition of Targeton because it expects that the merger will create $15 million of value. a. What is the maximum price that Maltonese should pay for one share of Targeton? b. What would be the PER ratio of the merged firm if Maltonese issues new shares to finance the acquisition, with Targeton shareholders receiving one Maltonese share for two Targeton shares