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 R966m,

ABC Ltd is a company operating in the software industry. It is considering the acquisition of XYZ Ltd with shares. ABC has earnings of R966m, with 135.2538m shares outstanding and a P/E ratio of 17. XYZ has earnings of R218m, with 57.3901m shares outstanding and a P/E ratio of 9. If ABC is offering a 26% premium and the exchange ratio is 0.71, how many shares will ABC need to buy XYZ? Give your answer to the nearest whole number

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