FGV Plantation Bhd plans to merge with TH Plantation Bhd. Based on the agreement, the exchange ratio will be based on earnings per share. The balance sheets of both companies as per below:

	FGV Plantation Bhd (RM000)	TH Plantation Bhd (RM000)
Current Assets	2,200	1,800
Fixed Assets	3,000	2,000
	5,200	3,800
Current Liabilities	500	600
Long term liabilities	400	500
Common Stocks	1,500	700
Premium	700	400
Retained earnings	800	500
	3,900	2,700

Additional information:	FGV Plantation Bhd (RM000)	TH Plantation Bhd (RM000)
Par value	RM5	RM 4
Price earnings ratio	6 times	3 times
Market per share	RM 24	RM 9