LOUIEED CO

Hello sir,

For part b)

I do not understand examiners rationale of calculating PE ratios implied by LOUIEED co,

In offer one (i) the two shares in one for one share in Tieed,
they’ve multiplied LOUIEED share by 5/3

based on my understanding, shouldn’t it be they’d get 180m shares in LOUIEED which are valued at 12.19 so 2×12.19/90 ?

I’m weak on purchase considerations it seem what questions should I practice

Regards