2. Alpha Ltd is considering the acquisition of Beta Ltd by making an offer of shares at...

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2. Alpha Ltd is considering the acquisition of Beta Ltd by making an offer of shares at five times of Beta's present earnings. Alternatively, a reverse Number of shares ('000) Profit after tax ('000) Total market value ('000) 16,000 8,000 Calculate the effect on EPS. Would your answer be different if there are merger benefits of *2,00,000 and 1,00,000 in the first proposal and second proposal, respectively?

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