FGV Plantation Bhd plans to merge with TH Plantation Bhd. Based on the agreement, the exchange ratio will be based on earnings per sh both companies as per below: FGV Plantation Bhd (RM'000) TH Plantation Bhd (RM'000) Current Assets 12,200 1,800 Fixed Assets 3,000 2,000 5,200 3,800 Current Liabilities 1500 Long term liabilities 1400 1500 Common Stocks 11.500 1700 Premium 1700 Retained earnings 1500 12.700 Common Stocks 1,500 1700 Premium 700 400 Retained earnings 800 1500 3,900 2,700 Additional information: FGV Plantation Bhd (RM'000) TH Plantation Bhd (RM'000) Par value RM5 RM 4 Price earnings ratio 16 times 3 times Market per share RM 9 Calculate the earnings per share for both companies Answer EPS for FGV Plantation Bhd : RM 4. EPS for TH Plantation Bhd : RM 4 EPS for FGV Plantation Bhd : RM 5. EPS for TH Plantation Bhd : RM 4 EPS for FGV Plantation Bhd : RM 4. EPS for TH Plantation Bhd : RM 3 EPS for FGV Plantation Bhd : RM 5. EPS for TH Plantation Bhd : RM 5 Calculate the new number of shares outstanding (NOSO) for target company Answer 131.250 shares 130,250 shares 129,250 shares 132,250 shares Calculate the value common stock for target company: Answer o RM 1,500,000.00 o RM 656,250.00 RM 1,631.250.00 RM 2.156.250.00