Yes I agree with IRR as AT cash flows - but King never said IRR. He has always said 'Hurdle rate' and from memory 2-3 years back they mentioned it as pretax return on investment to an analyst question. I'm hi-lighting that King's/Bible's definition could be different to your text-book IRR view leading you to over-estimate the EPS from this transaction. The basic math at Bible's 30% margin also suggests 15% pretax as the hurdle rate. To me its ~12% after tax return on 570MM investment @30% margins (I'm assuming 570MM is bulk goodwill) and 25% tax-rate. Its a good use of capital but nothing spectacular.
I can't see 16c EPS from this but I can't see CSFBs 4c either. 8-10c is my view.