Problem $7.$ What will be the price per share of the combined firm assuming the market is fooled by the growth in EPS? a $)$ $$14\mathrm{.}09$ b $)$ $ $46\mathrm{.}90$ $ $50\mathrm{.}00$ d $)$ $ $56\mathrm{.}67$ e$)$ None of the above

Problem $8.$ What will be the new P $/$ E ratio of the combined firm if the NPV of the acquisition is zero and the market knows it$?$ a $)9$ b $)11\mathrm{.}3$ c $)13\mathrm{.}6$ d $)19\mathrm{.}2$ e$)$ None of the abovePlease use the following information to answer the next TWO problems.

The shareholders of Fantastic Frames Inc $($FFI$)$ have voted in favour of a buyout offer from the Heavenly Home D$$cor $($HHD$).$ Information about each firm is given here:

$\backslash$table$[[,$FFI,HHD$],[$P$/$E Ratio,$4\mathrm{.}8,16],[$Shares Outstanding,$75,000,240,000],[$Earnings$,250,000,600,000]]$

FFI's shareholders will receive two shares of HHD stock for every three shares they hold in FFL$.$