Question:The shareholders of Segura Corporation have voted in favour of a buyout offer from Bentley Inc. Information about each firm is given here:

Segura Corporation Bentley Inc

Price-earning ratio 5 18

Shares outstanding 96,000 300,000

Earnings $240,000 $675,000

Segura Corporation's shareholders will receive three shares of Bentley Inc. stock for every four shares they hold in Segura Corporation

Note: Please make sure your final answers are accurate to 2 decimal places.

a) What will EPS of Bentley Inc. be after the merger?

EPS = $

b) What is the stock price of Bentley Inc. before the merger?

Stock price = $

c) What will the PE ratio be if the NPV of the acquisition is zero?

PE ratio =

d) What must Bentley Inc. feel is the value of the synergy between these two firms?

Synergy = $