The directors of Ostrow Ltd have appointed you as a merger and acquisition specialist. They are considering the
acquisition of Osborn Ltd. You are to advise them whether to proceed with the project.
The following data is available:

	Ostrow LTD	Osborn LTD
Market price per share	R10,00	R8,00
Earnings per share	R3,00	R2,40
No.shares issued	2 million	0,5 million

Additional information:
Cash payment to Ostrow Ltd = R12 million.
Synergy benefits of R10 million will accrue through the acquisition.
Ostrow Ltd has just had its assets re-valued and the valuation has appreciated quite significantly.

a) Calculate the acquisition premium.
b) Calculate the post-acquisition market price of the share
c) Calculate the post-acquisition increase/decrease price of the share

Assume the acquisition is based on earnings per share:

d) Calculate the post-acquisition earnings per share.