Microloft has 80 million shares outstanding. Microlofts shares are trading at $20 per share. Microlofts net income is $100 million. Microloft has two tranches of stock options issued to its management. The first tranche consists of 10 million call options with an exercise price of $15. The second tranche consists of 20 million call options with an exercise price of $25. You use the treasury stock method to account for these stock options when calculating the diluted number of shares outstanding. When using the diluted number of shares outstanding, what is Microlofts PE ratio?

Group of answer choices

16.0x

17.0x

None of the other answers is correct.

16.5x

17.5x

Microloft wants to acquire Pear. The synergistic benefits from the acquisition are expected to be $2 million. Microlofts pre-bid share price is $4 and its number of shares outstanding is 1 million. What is the maximum price that Microloft can offer to Pear?

Group of answer choices

$8

$7

$6

$9

None of the other answers is correct.