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The shareholders of Tilbury Company have voted in favour of a buyout offer from Dover Corporation. Information about each firm is given here: Tilbury Dover

The shareholders of Tilbury Company have voted in favour of a buyout offer from Dover Corporation. Information about each firm is given here:

Tilbury Dover
Price/earnings ratio 13.20 22
Shares outstanding 99,000 250,000
Earnings $ 220,000 $ 1,000,000

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

a. What will the EPS of Dover be after the merger?

b. What will the P/E ratio be if the NPV of the acquisition is zero?

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