Use the following data to answer this question.

It is January 1, 2017 and Pegasus is contemplating the acquisition of competitor Chimera. The following details are available ($ in millions except per share data):

January 1, 2017 ($ in millions)	Pegasus	Chimera
GAAP revenue	$150.40	$112.00
GAAP net income	$14.04	$9.92
Tax rate	40%	35%

Assume all activities below occur on January 1, 2017:

You also obtained the following transaction-related data:

Offer value	$132.0 million in cash
Sources of funds	50% of the offer value funded using Pegasus's cash reserve, currently generating a 1% annual return. Remainder of the funds needed to complete the deal raised via a new 5-year debt issuance at 5% annual interest rate.
Refinanced debt	Chimera has $5 million in debt outstanding at 4% annual interest which will be refinanced as part of the acquisition
Transaction fees	$2 million pretax
Financing fees	$1 million pretax
Cost synergies	$2 million pretax. Apply the acquirer's tax rate on the cost synergies.
Revenue synergies	$1 million in additional revenue due to cross selling opportunities. Assume revenue synergies are subject to the acquirer's standalone tax rate and profit margin.
Goodwill	$20 million
Asset write ups	None

What is the sum of all Pro forma Pre-tax Income acquisition adjustments pertaining to Synergies, Goodwill and write-ups?

• 1.00
• 2.00
• 2.16
• 3.00
• 6.16