Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need 100% correct 2017 - June [8] (b) R. Ltd. is intending to acquire S Ltd. (by merger) and the following information are available in
need 100% correct
2017 - June [8] (b) R. Ltd. is intending to acquire S Ltd. (by merger) and the following information are available in respect of both the companies: Particulars R Ltd. S Ltd. Total Current Earnings (*) 2,50,000 90,000 No. of Outstanding Shares 50,000 30,000 Market Price per Share (5) 21 14 (i) What is the present EPS of both the companies? (ii) If the proposed merger takes place, what would be the new earnings per share for R Ltd. (assuming the merger takes place by exchange of Equity Shares and the Exchange Ratio is based on the Current Market Pricel? Assume no synergy impact. (10 marks)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started