QUESTION $4$:

BabaAli Limited $($BA$)$ is considering acquiring Centten Inc $($CT$).$ It is expected that after the

acquisition earning per share of the merged firm will be $$8\mathrm{.}0.$ Below is some needed

information: $$

It is expected that synergies will increase total earnings and total value of the merged firm to

$$120,000,000$ and $$1,950,000,000$ respectively.

a$.$ Complete the above table.

b$.$ How many shares of BA are exchanged for each share of CT$?$

c$.$ What is the cost of merger to BA$?$

d$.$ What is the change in the total market value of those BA shares that were outstanding before

the merger? Explain the reason for the change.