Tyler Processing's current stock price is $22.40 per share. Tyler is 100% equity financed and has been targeted by several potential acquirers. One of these suitors, Gellar Manufacturing, has conducted analysis to determine Tyler's value to Gellar if it were acquired. Tyler's current price/earnings (P/E) ratio is 14, but Gellar is confident that under its management Tyler's P/E ratio would be 16.8. Tyler is expected to generate $40 million of operating income (EBIT) this year and has 20 million shares of stock outstanding. Both firms have a tax rate of 20%. How much per share is Tyler's stock worth if Gellar acquires the company? (Note: Round intermediate calculations to two decimal places.) $29.57 per share $51.20 per share $22.40 per share $26.88 per share How much synergy is this merger expected to generate? $6.72 per share $5.38 per share $4.48 per share $3.58 per share