show all the steps and calculations

Fedoro Lid an investment property company is in the process of negotiating the acquisition of op management estimates that the acquisition will result in economies of scale and the action on will result in economies of scale and the additional benefits will amount to R24 million (25 Marks) negotiating the acquisition of Redprop (Ltd). The The following information is available for the two companies: Fedprop Market price per share R30.00 Eamings per share Dividend per share Growth rate No. of shares issued 6 million R1.50 R2.00 14% Redprop R15.00 R1.20 R1.00 7% 2 million Required: 4.1 Calculate the exchange ratio based on market values. 4.2 Calculate the exchange ratio based on earnings per share. (2 marks) 4.3 Calculate the post-acquisition earnings per share (EPS), based on 42 above. (2 marks) 44 Calculate the benefits, if any, to the companies. (6 marks) 4.5 Assume that Fedprop agree to a one-for-one exchange of shares, calculate the expected post-acquisition earnings (5 marks) per share, (4 marks) 4.6 Assuming a post-acquisition Price/Earnings Ratio (P/E) of 12, calculate the expected post-acquisition market price and compare it to next year's expected price without the acquisition. Should the acquisition take place? Justify your answer (use EPS derived from 4.3 above) (6 marks) END OF PAPER