2012 Dec Q3 & 2012 June Q1

Dear Sir,

In 2012 Dec Q3, share-for-share offer part, the answer to calculate gain in Dentro share is using combined company equity value 11,000,000 x $3·60+1,250,000 x $4·50+30% x $5,625,000=$46,913,000 divided by total number of shares 11,000,000 + [1,250,000 x 3/2] = 12,875,000 to get share price of combined company 3.644.

If I use 2012 June Q1 approach, using EPS of combined company (4,950,000+625,000+30% x $5,625,000)/12875000=7,262,500/12875000=0.564, to get expected share pirce 0.564*8 (PE ratio of Sigra)=4.512. Then my gain in Dentro price is 50% instead of 21.5%.

What’s wrong with my answer?