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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.
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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 notStep by Step Solution
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