ABC ltd is planning to acquire PQR ltd to expand its operation. The following financials are available for the two firms. The merger is not expected to result in any synergies immediately

	ABC	PQR
Profit after tax (Rs. Million)	2500	500
Shares outstanding	100	80
P/E ratio	17	10

Determine the ownership structure of the combined entity if the deal on all-stock basis at the current market prices of the two companies

Determine the EPS of the combined entity if the deal is done on all-stock basis

If it is an all-stock deal at a premium of 25%, what is the maximum number of shares ABC can offer to PQR to prevent any dilution of its EPS

If the target is valued at 15 times of its current EPS. what will be the ownership pattern for a deal that has 60% cash and 40% stock in the offer