Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer fast in 5 minutes please Question 1 Not yet answered Two companies operating in the industry where one company Alld decides to acquire B

Answer fast in 5 minutes please
image text in transcribed
Question 1 Not yet answered Two companies operating in the industry where one company Alld decides to acquire B Ltd @ Rs 25 per share and the following information is available Marked out of 5.00 B LTD OP Flag question PARTICULARS Present Earnings (Rs) Shares Outstanding EPS (Rs) Price per share (Rs.) PIE Ratio A LTD 200,00,000 100,00,000 2.00 100,00,000 50,00,000 200 10 38 20.00 19.00 Post-acquisition the new combined entity will have Total combined earnings (RS) 3,00,00,000 OR 3 crores Total Shares outstanding 1,31,25000 EPS for Combined entity (Rs.) 2.28 Based on the above details, comment on the effects of merger for shareholders of A Ltd and B Ltd. Would you advise both shareholders to approve the merger

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business And Personal Finance

Authors: McGraw-Hill

1st Edition

0078945801, 9780078945809

More Books

Students also viewed these Finance questions