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Required: 1.1 1.2. 1.3. Advise YumYo Ltd. on the purchase price theyr should be willing to pay for the Natural Dew shareholding. Support your answer

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Required: 1.1 1.2. 1.3. Advise YumYo Ltd. on the purchase price theyr should be willing to pay for the Natural Dew shareholding. Support your answer with calculations. Round to the nearest Rand, where required. {44 marks] YumYo Ltd. is considering alternative methods of funding the purchase of the Natural Dew shareholding. They are considering an exchange of shares. Advise YumYo Ltd. on the exchange ratio of shares which should be offered as an alternative remuneration. [5 marks) Assume R53 million worth of svnergv earning benets will be obtained from the merge between YumYo Ltd. and Natural Dew Ltd. Advise the directors of Yum-Yo Ltd. what the postmerge earnings per share will be. [E marks)

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