Rco will acquire 100% shares of Dco through exchange of shares and the offer price to Dco is Rs.65. Relevant financial informatio are given below:

	Rco	Dco
EAT	50,000	10,000
Outstanding number of shares	5,000	2,000
Market Price of shares	150	55

a. Calculate the number of shares to be issued by Rco to Dco's shareholders.

b. Calculate P/E of both the companies on acquisition offer.

c. Calculate post-acquisition EPS and P/E

d. What is the maximum price Rco can pay?