On 3 October 207. BBC announced that it has entered into a scheme implementation deed with XYZ whereby BBC will acquire all of the issued securities of XYZ via a scheme of arrangement. Consideration: 0.6BBC shares for 1XYZ shares Use the following information to answer the questions below. Before merger announcement: The merger will result in revenue enhancing synergies. Based on your analysis, the earnings of the combined entity will be 15% higher than the sum of the earnings of the target and the acquirer as independent entities. AP/E ratio of 20 is believed to be appropriate for valuing the merged entity. E3. Assume that the merger is certain to complete and the market is efficient. Calculate the share price of the bidder and the target right after the merger announcement is made. Show calculations and state any necessary assumptions