Qns$-2$ The following Information relates to the accruing company X ltd and Target Company Y Ltd

X ltd$.$ Y ltd$.$

No of Shares $($F$.$V Rs $10$ each$)10\mathrm{.}00$ lakhs $7\mathrm{.}50$ lakhs

Market Capitalization $($Rs$)500$ lakhs $750$ lakhs

P$/$E ratio Times $105$

Reserve and Surplus $($Rs$)300$ lakhs $165$ lakhs

Promoters holding $($no of Shares $4\mathrm{.}75$ lakhs $5\mathrm{.}00$ lakhs

The board of directors of both companies has decided to give a fair deal of the share holders accordingly for the swap ratio the weight are chosen as $40\%,25\%$ and $35\%$ respectively, for earnings, book value and market price of a share of each company you have been advised to do the following $.$

$1.$ Calculate the swap ratio and promoters holding percentage after acquisition.

$2.$ What is the EPS of X LTD AFTER acquisition of Y ltd$?$

$3.$ What are the expected market price per share and market capitalization of X ltd after the acquisition assuming P$/$E ratio of the Firm X ltd remain unchanged?

$4.$ Calculate the free float market capitalization of the merged company.

$5.$ Please state what type of beta you will use if Y ltd does not have any loan and you were asked to conduct a DCF based valuation of the shares Y ltd $.$ Provide two Primary Justification Behind your answers.