Please use the following information to answer the next four multiple choice questions (Multiple Choice Questions 3, 4, 5 and 6):

Big Buyer would like to buy Tiny Target for a 25% control premium. Currently Big Buyer's stock price is $38.67, its EPS is $3.49 and it has 107mm shares outstanding. Currently Tiny Target's stock price is $42.50 (before control premium), its EPS is $2.48 and it has 23.5mm shares outstanding. Big Buyer's cost of debt is 4% and its tax rate is 38%.

1.If Big Buyer uses stock to acquire Tiny Target what would Big Buyer's proforma EPS be?

A) $2.98

B) $3.04

C) $3.10

D) $3.17

2.If Big Buyer uses stock to acquire Tiny Target what amount of pre-tax synergies are required for Big Buyer to breakeven on an EPS basis?

A) $54.4mm

B) $59.6mm

C) $85.3mm

D) $87.7mm

3.If Big Buyer uses debt to acquire Tiny Target what would Big Buyer's proforma EPS be? A) $3.75

B) $3.73

C) $3.71

D) $3.69

4.What is the maximum price Big Buyer can pay before the deal becomes dilutive if it acquires Tiny Target with debt?

A) $95.38

B)$97.36

C)$99.00

D) $100.00