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
Price-earnings ratio		13.8			22
Shares outstanding		90,000			220,000
Earnings	$	200,000		$	920,000

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? (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? (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

$