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Please give answer now Question 3 A Ltd Profit after Tax Rs redoute 10.00 Flag queston BLtd 500000 50,000 Outstanding Equity Shareholding 50,000 50000 PE

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Question 3 A Ltd Profit after Tax Rs redoute 10.00 Flag queston BLtd 500000 50,000 Outstanding Equity Shareholding 50,000 50000 PE Multiple 6 5 A Ltd takes over B Ltd and the merger takes place by exchange of equity shares at market price Compute the following 1. Pre Take over EPS of A Ltd. & BLtd. 2 Marks 2. Pre Take over Market price of A Ltd & B Ltd 2 Marks 2 Marks 3. Exchange Ratio 4. Post Takeover EPS of A Ltd. 4 Marks

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