1. X Company Ltd intends to take over Y Company Ltd by offering two of its shares...

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1. X Company Ltd intends to take over Y Company Ltd by offering two of its shares for every five shares in Y Company Ltd Relevant financial data are as follows: takeover is possible whereby Beta could offer to buy Alpha's shares at twenty times its present earnings. What are the implications of these proposals? The relevant data are as follows: X Co. Ltd Y Co. Ltd Alpha Beta Earnings per share (*) Market price per share (*) Price-earnings ratio 2 2 Earnings per share (*) 2 2 100 40 Market price per share (2) 40 20 50 20 Price-earnings ratio 20 10 Number of shares ('000) 100 250 400 400 Profit after tax (*'000) 200 800 800 Total market value (2000) 10,000 10,000 500 What is the combined earnings per share? Calculate the P/E ratio of the combined firm. Has any wealth been created for shareholders?

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I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening. My Expert Service Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities

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