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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
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
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