The shareholders of Bread Company have voted in favor of a buyout offer from Butter Corporation. Information about each firm is given here:

	Bread			Butter
Price-earnings ratio		6.35			12.7
Shares outstanding		73,000			146,000
Earnings	$	230,000		$	690,000

Breads shareholders will receive one share of Butter stock for every three shares they hold in Bread.

a-1	What will the EPS of Butter be after the merger? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

a-2	What will the PE ratio be if the NPV of the acquisition is zero? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b.	What must Butter feel is the value of the synergy between these two firms?