4. The Munich Beer Company plans to acquire Liverpool Beer Co, for 60 per share, a 50% premium above the current market price. The financial director of Munich Beer argues that this valuation can be justified using a price-earnings analysis: "Munich Beer has a P/E ratio of 15 and we expect that we will be able to generate long-term earnings for Liverpool Beer of 5 per share. This implies that Liverpool Beer is worth 75, which is well above our 60 offer price." Do you agree with this analysis? What are the underlying assumptions