The data describing the acquiring company 'A' and the takeover object 'B' are presented in the table below:

	A (buyer)	B (acquisition object)
Share price before acquisition (PLN)	30	22
Net profit (millions of PLN)	80	37,5
Number of shares (millions of shares)	40	15
EPS (PLN/share)	2	2,5
P/E (Price/Profit)	15	8,8
Market capitalization (millions of PLN)	1200	330

Company A pays for the shares in B in cash and shares. The offer for the seller is PLN 15.0 per share B and 0.541 shares in A.

a) Determine what is the minimum required synergy effect, which means indicating the size of such a synergy effect that will not reduce the share price of the acquiring company.

b) Determine what impact the minimum required synergy effect is influenced by the fact that before the announcement of the acquisition the company already had a share in the shareholding structure in the amount of 4.8% (the so-called foothold).

c) Assuming self-financing of the investment in restructuring (cost of capital 10%) and linking the synergy effect with the profitability of the company, calculate what increase in profit before tax (T = 19%) should be expected to obtain the required level of synergy calculate on the basis of the previously calculated minimum synergy effect synergy effects

d) Calculate how much free cash flow should increase on average per year (DCF valuation model)