Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve as soon as possible MERGER & ACQUISITION QUESTION NO.3A(Exam Question)(Study Material)(8 Marks) A Co. Ltd. is studying the possible acquisition of B Co.

image text in transcribed

please solve as soon as possible

MERGER & ACQUISITION QUESTION NO.3A(Exam Question)(Study Material)(8 Marks) A Co. Ltd. is studying the possible acquisition of B Co. Ltd. by way of merger. The following data are available in respect of the companies: Particulars A Co. Ltd. B Co. Ltd. Earnings after tax (Rs.) 80,00,000 24,00,000 No. of equity shares 16,00,000 4,00,000 Market value per share (Rs.) 200 160 (i) If the merger goes through by exchange of equity and the exchange ratio is based on the current market price, what is the new earning per share for A Co. Ltd.? o that the mornings available to its shareholders will not

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

6. What is the VOC?

Answered: 1 week ago