The shareholders of Flannery Company have voted in favor of abuyout offer from Stultz Corporation. Information about each firmis given here:
| Flannery | Stultz | |||||
| Price–earnings ratio | 14 | 32 | ||||
| Shares outstanding | 84,000 | 320,000 | ||||
| Earnings | $ | 190,000 | $ | 950,000 | ||
Flannery’s shareholders will receive one share of Stultz stock forevery three shares they hold in Flannery.
a-1. What will the EPS of Stultz be after themerger? (Do not round intermediate calculations and roundyour answer to 3 decimal places, e.g., 32.161.)
EPS $
a-2. What will the PE ratio
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