City Co. is planning to acquire Mega Co. Information of these two companies are presented as follow: Mega Co.'s shareholder will receive one new share of City Co. for every four shares they have in Mega Co. Based on these information, answer the following questions: a. What is the EPS of City Co. after the acquisition? What is the P/E ratio if the NPV of the acquisition is zero? b. What is the cost of acquisition? What must Mega Co. feel is the value of the synergy between those two firms? Explain