1. determine the bidder's max exchange ratio and target's min exchange ratio. does the current offer lead to a mutually beneficial deal? 2. calculate total present value of synergy! 3. assume the merger is certain to complete and market is efficient, calculate share price of the bidder and target right after the merger announcement is made!

please show calculations and assumptions

Part E. Forms of Payment - Optimal Exchange Ratio On 3 October 20x7,BBC announced that it has entered into a scheme implementation deed with XYZ whereby BBC will acquire all of the issued securities of XYZ via a scheme of arrangement. Consideration: 0.6BEC shares for 1XYZ shares Use the following information to answer the questions below. Before merger announcement: The merger will result in revenue enhancing synergies. Based on your analysis, the earnings of the combined entity will be 15% higher than the sum of the earnings of the target at he acquirer as independent entities. A P/E ratio of 20 is believed to be appropriate for valuing the merged entity