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

	Jolie			Pitt
Priceearnings ratio		18.2			30
Shares outstanding		78,000			300,000
Earnings	$	130,000		$	910,000

Jolie's shareholders will receive one share of Pitt stock for every three shares they hold in Jolie.

a-1	What will the EPS of Pitt 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

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

Synergy value

$