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a) ABC Itd is planning to acquire XYZ Ltd with shares of common stock. The following information relates to the two companies: ABC XYZ sh.
a) ABC Itd is planning to acquire XYZ Ltd with shares of common stock. The following information relates to the two companies: ABC XYZ sh. 10M Sh. 2.5M Current earnings Shares outstanding 2,500,000 1,000,000 EPS Sh. 4.000 sh, 2.5 Price per share Sh.30 sh. 15 i. If the management of Xyz ltd. has agreed on an offer of sh. 20 in common stock in ABC Ltd. Advice whether the strategy acquisition will be viable. (10marks)
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