• Determine the net present value of the cash flows resulting from synergies.
  • Assume that the earnings due to synergies end after 5 years.
  • Use a table to illustrate your calculations and conclusion.
• Determine the EPS of the combined company in Year 1 if these synergies occur.
  • Assume an exchange ratio of 0.45.

Admiral Foods Corporation Income Statement (in Millions of Dollars) AdmiralFoodsCorporationDividendspershareCommonstack(pricepershare)AdditionalInformationFavoriteFoodSystems$2.50$50$0.60$15 Admiral Foods Corporation Income Statement (in Millions of Dollars) AdmiralFoodsCorporationDividendspershareCommonstack(pricepershare)AdditionalInformationFavoriteFoodSystems$2.50$50$0.60$15