Question 4 (a) Explain the difference between: Congeneric merger and conglomerate merger. Horizontal merger and vertical merger. (4 marks) (4 marks) (6) Define divestiture for a business and explain THREE (3) reasons a company chooses to divest. (8 marks) Max company, whose stock is currently selling for RM12 per share, is interested in acquiring Min company. To prepare for the acquisition, Max has been repurchasing its own shares over the past 3 years. Min's stock is currently selling for RM2 per share, but in the merger negotiations, Max has found it necessary to offer Min RM3 per share. Below is the financial information which relates to Max and Min: Max Min company company Earnings available for common stock RM800,000 RM200,000 Number of shares of common stock outstanding 400,000 50,000 Required: Calculate the earnings per share (EPS) before and after the merger. (6 marks) (11) Explain the effect of price per earnings (P/E) ratios on EPS. (3 marks, [Total: 25 Marks)