Question $4(25$ Marks$)$ Case Study: Proposed Acquisition of Polo Limited by Chev Limited Chev Limited, a software development company, is considering acquiring Polo Limited through a share exchange. The proposed merger is expected to generate economies of scale, resulting in an estimated additional value of R$95,000,000.$ As part of the agreement, the purchase consideration for the acquisition will be structured as a share exchange, with Chev Limited offering $1\mathrm{.}5$ of its own shares for every $1$ share held by shareholders of Polo Limited. Key Financial Information: Company Number of Shares Price per Share Earnings After Tax Chev Limited $20,600,000$ R$38$ R$28,000,000$ Polo Limited $15,400,000$ R$30$ R$20,000,000$ Required: $4\mathrm{.}1$ Determine the proposed post$-$acquisition market price per share. $(2$ decimal places$).(7$ Marks$)4\mathrm{.}2$ Will the shareholders of Chev Limited be happy with this price? Why? $(2$ Marks$)4\mathrm{.}3$ How much will the shareholders of Polo Limited gain or lose on a per share basis. $(2$ Marks$)4\mathrm{.}4$ Determine the purchase price of Polo Limited that is implied by the $1\mathrm{.}5$ exchange ratio. $(3$ Marks$)4\mathrm{.}5$ Calculate the net present value of the proposed acquisition. $(4$ Marks$)4\mathrm{.}6$ Calculate the proposed acquisition premium. $(3$ Marks$)4\mathrm{.}7$ Compute the earnings per share for Chev Limited before and after the proposed acquisition. Assume that the earnings after tax after the proposed acquisition is R$50000000.(4$ Marks