Company X is considering acquiring Company Y. Company Y’s current market value of equity is $10,000,000, and it has $5,000,000 in debt. Company X expects to generate synergies of $3,000,000 from the acquisition.

Requirements:

1. Calculate the total value of Company Y to Company X including synergies.
2. Determine the maximum price Company X should pay for Company Y.
3. Assess the impact on Company X’s financial statements post-acquisition.
4. Evaluate the acquisition's effect on Company X’s earnings per share (EPS).