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Please don't copy from other answers 2017 - June [7] (a) The following information is provided related to the acquiring firm, Sun Ltd. and the

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Please don't copy from other answers

2017 - June [7] (a) The following information is provided related to the acquiring firm, Sun Ltd. and the target firm Moon Ltd. Particulars Sun Ltd. Moon Ltd. Profits after Tax 2,000 Lakh 4,000 Lakh Number of Shares outstanding 200 Lakh 1,000 Lakh P/E Ratio (times) 10 5 Required: (i) What is the swap ratio based on the current market prices? (ii) What is the EPS of Sun Ltd., after the acquisition? (10 marks) takeover of Y Ltd. The particulars of the two

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