Question: Please give the specific process Question 1 5 pts Albertsons Inc., is looking to buy Pam's Club Inc. in an all-stock deal. Synergies from the

Please give the specific process Question 1 5 pts Albertsons Inc.,

Please give the specific process

Question 1 5 pts Albertsons Inc., is looking to buy Pam's Club Inc. in an all-stock deal. Synergies from the merger are expected to result in (additional) net income of $5,000 for the combined firm. The table below shows related financials of the two firms: Forward Shares Pre-announcement Stock Price EPS Albertsons 12.000 4 $18 Pam's Club 6,000 2.5 $12 What is the maximum price/share that Albertson's should offer for Pam's Club in order to prevent the deal from being dilutive? (Hint: We did a somewhat similar problem in class with no synergies] O $5/share O $10/share $15/share $20/share O $25/share

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