Question: ABC Ltd is a company operating in the software industry. It is considering the acquisition of XYZ Ltd with shares. ABC has earnings of R936m,

ABC Ltd is a company operating in the software industry. It is considering the acquisition of XYZ Ltd with shares. ABC has earnings of R936m, with {B}m shares outstanding and a P/E ratio of 16. XYZ has earnings of R214m, with 55m shares outstanding and a P/E ratio of 12. If ABC is offering a 27% premium and the exchange ratio is 0.73, what is the post-merger PE ratio share? Give your answer to 2 decimal places

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