The following information relates to two companies Alpha plc Profit after tax 200,000 P/E ratio 16 Beta plc 800,000 21 The management of Beta estimate that if they acquire Alpha they could save an after tax cost of 100,000 annually. Additionally, they estimate that the P/E ratio of the new company would be 20 On the basis of these estimates, what is the maximum price that Beta plc should offer for Alpha? 6.3m 5.2m 4.2m 2.0m