World Enterprises is determined to acquire Intous Ltd through exchanging stocks. World Enterprises is offering R65 per share for Intous ltd. You are given the following information

	World Enterprises	Intous Ltd
Net Income	R50	R10
Shares outstanding	5000	2000
Earnings per share	R10	R5
Market price per share	R150
Price earnings ratio	R15

a. Calculate the number of shares to be issued by Intous Ltd:

b. Calculate combined earnings per share of both World Enterprise and Intous Ltd

c. Calculate price earnings ratio (P/E ratio) paid (Hint: use the R65 to calculate the P/E ratio)

d. Compare the current and paid P / E ratios