=+4*

High ple has an historic PER of 22 and Low ple has an historic PER of 12. Both companies have 100 million shares in issue and produced earnings of £20m in the last financial year. High has offered three of its shares for every five held by Low's shareholders.

Required a If you held 1,000 shares in Low and accepted the offer from High, by how much would your wealth increase assuming High's shares remain at the pre-bid price?