EPS, PE, and Mergers (LO1) The shareholders of Tilbury Company have voted in favour of a buyout offer from Dover Corporation. Information about each firm is given here: Tilbury Dover Price/earnings ratio 13.5 21 Shares outstanding 90,000 210,000 Earnings $180,000 $810,000 Tilburys shareholders will receive one share of Dover stock for every three shares they hold in Tilbury. a. What will the EPS of Dover be after the merger? What will the P/E ratio be if the NPV of the acquisition is zero? b. What must Dover feel is the value of the synergy between these two firms? Explain how your answer can be reconciled with the decision to go ahead with the takeover