1. Mwangi ltd is taking over Kamau ltd. The shareholders of Kamau ltd would receive 0.8 shares of Mwangi ltd for each share held by them. The merger is not expected to yield any economies of scale and operating synergy. The relevant data for the two companies are as follows:

	Mwangi	Kamau
Net sales (ksh. Millions)	335	118
Profit after tax (ksh. Millions)	58	12
Number of shares	12,000,000	3,000,000
Market Value Per Share (ksh)	30	20

Required:

For the combined company (after merger), Calculate the;

1. Total Number of Shares,
2. EPS,
3. P/E ratio,
4. Market Value per share,
5. Calculate the premium paid by Mwangi ltd to the shareholders of Kamau ltd.