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

	Flannery			Stultz
Priceearnings ratio		12			36
Shares outstanding		90,000			360,000
Earnings	$	220,000		$	880,000

Flannerys shareholders will receive one share of Stultz stock for every three shares they hold in Flannery.

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

EPS

$

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.)

PE ratio

b.	What must Stultz feel is the value of the synergy between these two firms? (Do not round intermediate calculations.)

Synergy value

$