Please answer fully and correctly

BA Ltd. and DA Ltd. both the companies operate in the same industry. The Financial statements of both the companies for the current financial year are as follows: Balance Sheet Particulars BA Ltd. (*) DA Ltd. (3) Current Assets 14,00,000 10,00,000 Fixed Assets (Net) 10,00,000 5,00,000 Total (3) 24,00,000 15,00,000 Equity capital (10 each) 10,00,000 8,00,000 Retained earnings 2,00,000 14% long-term debt 5,00,000 3,00,000 Current liabilities 7,00,000 4,00,000 Total (3) 24,00,000 15,00,000 Income Statement BA Ltd. (R) DA Ltd. (3) Net Sales 34,50,000 17,00,000 Cost of Goods sold 27,60,000 13,60,000 Gross profit 6,90,000 3,40,000 Operating expenses 2,00,000 1,00,000 Interest 70,000 42,000 Earnings before taxes 4,20,000 1,98,000 Taxes @ 50% 2,10,000 99,000 Earnings after taxes (EAT) 2,10,000 99,000 Additional Information: No. of Equity shares 1,00,000 80,000 Dividend payment ratio (D/P) 40% 60% Market price per share 340 315 Assume that both companies are in the process of negotiating a merger through an exchange of equity shares. You have been asked to assist in establishing equitable exchange terms and are required to: (i) Decompose the share price of both the companies into EPS and P/E components, and also segregate their EPS figures into Return on Equity (ROE) and book value/intrinsie value per share components. (i) Estimate future EPS growth rates for each company. (ii) Based on expected operating synergies BA Ltd. estimates that the intrinsic value of DA's equity share would be 320 per share on its acquisition. You are required to develop a range of justifiable equity share exchange ratios that can be offered by BA Ltd. to the shareholders of DA Ltd. Based on your analysis in part () and (ii), would you expect the negotiated terms to be closer to the upper, or the lower exchange ratio limits and why? (iv) Calculate the post-merger EPS based on an exchange ratio of 0.4:1 being offered by BA Ltd. and indicate the immediate EPS accretion or dilution, if any, that will occur for each group of shareholders. (u) Based on a 0.4: 1 exchange ratio and assuming that BA Ltd.'s pre-merger P/E ratio will continue after the merger, estimate the post-merger market price. Also show the resulting accretion or dilution in pre-merger market prices