4. The following accounting information regarding shareholders' fund for the accounting year ended March 31, 2021 have been obtained from the financial records of Lambda Limited Particular Amount (Rs. Crores) 5. Paid up Share capital: 400 40 crores shares @ Rs. 10 each (fully paid up) 6. Reserves and Surpluses: 2.a Free Reserves 800 2.b Profit and Loss A/C 100 2.c Share Premium 200 2.d Other Reserves 100 Total Reserves and Surpluses 1200 Total Shareholders Fund (Net Worth) 1600 During the accounting year 2020-21, Lambda Limited earned profit after tax (PAT) of Rs. 200 crores. The current market price per share is Rs. 80 per share Lambda Limited is a cash rich company and the Board of Directors of Lambda Limited decides to use available cash to buy back 10% of shares at a buy back price of Rs. 100 per share. You are VP (Finance) of Lambda Limited and you have been asked by your CFO to provide answers to the following questions. a. Prepare the statement showing Shareholders' Fund of Lambda Limited after the buyback of shares. Explain your answer. b. What is the impact of buyback of shares on earning per share of Lambda Limited? Explain why earning per share of Lambda Limited has increased or decreased after the buyback of shares. Assume that PAT of Lambda Limited remains the same at Rs. 200 crores after buyback of shares. Show all calculations. c. What is the impact of buy back on market price per share of Lambda Limited? Explain why market price per share of Lambda Limited has increased or decreased after the buyback of shares. Assume that PAT and price-earning ratio of Lambda Limited remains the same after the buyback of shares. Show all calculations