Albertsons Inc., is looking to buy Pam's Club Inc. in anall-stockdeal. Synergies from the merger are expected to result in (additional) net income of $5,000 for the combined firm. The table below shows related financials of the two firms:

Shares

Forward EPS

Pre-announcement Stock Price

Albertsons

12,000

4

$18

Pam's Club

6,000

2.5

$12

What is themaximumprice/share that Albertson's should offer for Pam's Club in order to prevent the deal from being dilutive? [Hint:We did a somewhat similar problem in class withno synergies]