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Company A has agreed to acquire Company P_ denl financed 100% with Debt. Company A has standalone Earnings of $100,000 and 50,000 shares outstanding. Company

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Company A has agreed to acquire Company P_ denl financed 100% with Debt. Company A has standalone Earnings of $100,000 and 50,000 shares outstanding. Company B has standalone Earnings of $60,000. Company A is paying $800,000 for Company B, with debt bearing interest of 8% after-tax NewCo Tax Rate is 60% What level of after-tax synergies are needed for Company A to breakeven on EPS? A. $5,000

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