Mergers, Acquisition And Restructuring Question.

The following information relating to the acquiring Company Good Lid. and the target Company Better Ltd are available. Both the Companies are promoted by a Multinational Company, Best Lid. The promoter's holding is 55% and 65% respectively in Good Lid, and Better Ltd : Particulars Good Limited Better Limited Share capital 2 400 Lashs E 200 Lashs Free Reserves and surplus 160 0 Lashs #1000 Lashs Paid up value per share E 200 120 Free float market 2 times of the Share Capital 1.28 times of the Share capitalization Capital PE Ratio (times) 20 Best Ltd, is interested in doing justice to both companies. For the swap ratio weights are assigned to different parameters by the Board of Directors as follows: Book value 201%. Esming per share 609% Market price 209%| You are required to compute (i) The swap ratio based on above weight:? (ii) The Book Value, Earning Per Share and Expected Market Price of Good Lid., (assuming PE Ratio of Good Limited remains the same and all assets and liabilities of Better Lid are taken over at book value.) (iin) Calculate: 2) Promoter's revised holding in the Good Lid. b) Free float market capitalization () Also calculate No. of Shares, Eating per Share (EPS) and Book Value (B.V.), if after acquisition of Better Ltd, Good Ltd. decided to : i. Issue Bonus shares in the ratio of 1 : 2; and fi. Split the stock (share) as $ 5 each fully paid