QUESTION ONE

a$)$ Briefly explain six anomalies that can interfere with the market efficiency. $(12$ marks$)$

b$)$ Huge Itd is contemplating acquiring Tiny Itd and below is their financial data:

$\backslash$table$[[$Earnings$,$Huge ltd$,$Tiny lud$],[$Number of ordinary shares,shs$.6,678,000,$shs$.1,162,000,],[$MPS$,1,260,000,200,000]]$

Offer price by huge Itd is shs$.56$

Reguired

i$)$

Exchange ratio $q,$

$(2$ marks$)$

ii$)$ Compute the post$-$acquisition EPS

iii$)$ Compute the non$-$diluting offer price

Woc $K{f}^{(3\text{m}\text{a}\text{r}\text{k}\text{s})}$