Company A is considering the acquisition by shares of company B. The following information is also available

	Company A	Company B
Present earning	100 000	25 000
Shares	25 000	10 000
Earnings per share	10	7
Price /earnings ratio	28	20
Price of shares	68	31

company B has agreed to an offer of 70 a share to be paid in company A shares

REQUIRED

advice the management on whether the proposed merger is viable