Question: Data Bee-Bee Honey PE Ratio 4 12 Share in Issue 120 000 240 000 Earnings (after tax) R 360 000 R 720 000 Bee-Bee shareholders

Data Bee-Bee Honey PE Ratio 4 12 Share in Issue 120 000 240 000 Earnings (after tax) R 360 000 R 720 000 Bee-Bee shareholders will receive one share in Honey for every share they hold.

2.1.1 What will the EPS of Honey be after the merger? (4)

2.1.2 Calculate Honey’s share price and PE ratio if the NPV of the acquisition is zero. (6)

2.1.3 What is the value of Bee-Bee to Honey?

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