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The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation. Flannery has a P/E ratio of 6.35, 67,000 shares
The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation. Flannery has a P/E ratio of 6.35, 67,000 shares outstanding, and earnings of $225,000. Stultz has a P/E ratio of 12.70, 137,000 shares outstanding, and earnings of $718,000. Flannery's shareholders will receive one share of Stultz stock for every three shares they hold in Flannery. What will the EPS of Stultz be after the merger?
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