(b) of RM55 per shares. Jakel Development expects its shares to sell at the same price earnings or multiple increase after the merger as before merging. The following information for both firms: Jakel...

Extracted text: (b) of RM55 per shares. Jakel Development expects its shares to sell at the same price earnings or multiple increase after the merger as before merging. The following information for both firms: Jakel Development Berhad is considering to merge with Recron Malaysia Sdn Bhd at a cost Recron Earnings available for common share RM225,000 RM50,000 90,000 units 15,000 units RM50 Item Jakel Number of shares outstanding Market price per share RM40 Based on the above information: i. Calculate the share price of the merged firm. ii. Jakel Development Berhad is the largest textile company while Recron Malaysia is a cotton yarn manufacturer in Malaysia. If both companies are agreed to merge, identify the type of merger and explain how the merge can foster growth and long-term success for the firm.