Question: The shareholders of Bread Company have voted

The shareholders of Bread Company have voted in favor of a buyout offer from Butter Corporation. Information about each firm is given here:

Bread’s shareholders will receive one share of Butter stock for every three shares they hold in Bread. a. What will the EPS of Butter be after the merger? What will the PE ratio be if the NPV of the acquisition is zero? b. What must Butter 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.