Profit and loss account extracts for the last year (All the figures are in millions of TZS)

	Woniwo Ltd	AutoGlass Ltd
Sales Revenue	830.2	490.6
Net profit before taxation	380.0	142.5
Corporation Tax	76.0	28.5
Net Profit after taxation	304.0	114.0
P/E ratio	30.0	10.0
Ordinary shares in issue (millions)	400.0	120.0

The Finance Director of Wonwo Ltd has estimated that the proposed acquisition will result in the following savings:

IT Costs	22.4
Distribution costs	17.6
Total savings before taxation	40.0
Taxation	8.0
Total savings before taxation	32.0

The Finance Director has also argued that not all shareholders in Woniwo Lid may be convinced by the commercial logic of the proposed acquisition and, as a result, the P/E ratio of Woniwo Ltd will probably fall by 30% following a successful takeover.

Required:

Assuming that the share price mentioned by AutoGlass Ltd Is acceptable to the shareholders:

(i) Calculate price per share that Woniwo Lyd will have to pay to acquire the shares of AutoGlass Ltd;

(ii) Calculate the exchange rate for this years of the two companies and the number of shares it must be issued by Woniwo Ltd to acquire the shares of AutoGlass Ltd

(iii) Calculate the market value per share of Woniwo Ltd following a successful takeover, assuming the savubgs indicated are achieved and the P/E rario of Woniwo Ltd falls by 30%.