Figure 1 Selected Financial Data		National Brands		A-1 Holdings
	Total earnings expected in the coming year..........................................................	$ 400,000,000		$ 152,000,000
	Number of shares outstanding............................................	113,640,000		61,800,000
	Earnings per share.........................................................	$ 3.52		$2.46
	Priceearnings ratio.......................................................	13.6		5.3
	Market price...................................................................	$ 47.88		$ 13.00	(rounded)
	Book value per share......................................................	$ 26.84		$ 6.39
	Growth rate before merger.................................................	8.53	%	19.61	%
	Liquid assets (cash and equivalent)....................................	$1,153,000,000		$1,736,800,000
	Total assets...................................................................	$5,160,300,000		$2,294,500,000
	Total debt.......................................................................	$2,110,300,000		$1,899,500,000
	Total equity....................................................................	$3,050,000,000		$ 395,000,000
	Dividend payout ratio......................................................	48.0	%	0	%

3.

If Nationals P/E does not change following the purchase of A-1, what will its stock price be? Is it likely that Nationals P/E will remain at 13.6? Or do you think it will rise or fall?

4.

Do you think Nationals Pac Man defense will be successful? Or do you think A-1 will succeed in buying out National? Do you think that Nationals stockholders are better off as a result of A-1s attack and Nationals Pac Man defense (assuming it succeeds)? Do you think Kelly OBrien, head of A-1, should be viewed as a good guy, whose action will produce more efficient companies, or a bad guy, who is a destroyer of traditional values and employees careers?