The following information relates to two companies, Right plc and Left plc. Extracts from the pre-merger budgets of both companies are as follows: Earnings after tax P/E ratio Right Left 1,200,000 5,600,000 18 27 Left plc's management estimate that if they were to acquire Right plc they could save 750,000 annually after tax on admin costs in running the new joint company. Additionally, they estimate that the P/E ratio of the new company would be 30. Required: On the basis of these estimates, what is the maximum that Left plc's shareholders should pay for the entire share capital of Right plc? a) b) 21.6m 32.4m 52.8m 75.3m d)