The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt Corp. Information about each firm is given Jolie Pitt Price-earnings ratio 13.5 21 Shares Outstanding 75,000 210,000 Earnings 150,000 810,000 Jolies shareholders will receive one share of Pitt stock for every three shares they hold in Jolie. a) What will the EPS of Pitt be after the merger? What will the PE ratio be if the NPV os the acquisition is zero? b) What must Pitt feel is the value of the synergy between these two firms? Explain how your answer can be reconciled with the decision to go ahead with the takeover.