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calculation QUESTION FOUR Nyayo Enterprises (NE) is considering two possible acquisitions, Company A and HB. NE is interested in making any acquisition that increases its

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QUESTION FOUR Nyayo Enterprises (NE) is considering two possible acquisitions, Company A and HB. NE is interested in making any acquisition that increases its current carring pcr share. Acquisition will be by exchanging of sharemergers VERSITY OF NAIR p. Required ndicated the number and value of new sharcs to be issucd. (25 marks) Fill the table below clearly i COMPANY liarning After tax (sh' million) Pricc-to-Earning Ratio Market yalue of Equity (Sh' million) Number of equity shares (millions) larnings per share Price per sharc Maximum new sharces issued (millions) 30 8132 2 2 Value of new shares issucd (Sh' millions) 20% 2 QUESTION FOUR Nyayo Enterprises (NE) is considering two possible acquisitions, Company A and HB. NE is interested in making any acquisition that increases its current carring pcr share. Acquisition will be by exchanging of sharemergers VERSITY OF NAIR p. Required ndicated the number and value of new sharcs to be issucd. (25 marks) Fill the table below clearly i COMPANY liarning After tax (sh' million) Pricc-to-Earning Ratio Market yalue of Equity (Sh' million) Number of equity shares (millions) larnings per share Price per sharc Maximum new sharces issued (millions) 30 8132 2 2 Value of new shares issucd (Sh' millions) 20% 2

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