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). X company Ltd intends to take over Y company Ltd. The financial information is provided. X-Co. Ltd Y-Co. Ltd Net Sales (Kshs in Million
). X company Ltd intends to take over Y company Ltd. The financial information is provided.
|
| X-Co. Ltd |
| Y-Co. Ltd |
|
|
|
|
|
| Net Sales (Kshs in Million | 350 |
| 45 |
| Earnings Per share | 3.75 |
| 2.5 |
| Dividend per share | 1.3 |
| 0.6 |
| Number of Shares | 7.5 |
| 1.5 |
| Profit After Tax (Kshs in Million) | 28.13 |
| 3.75 |
| Total Market Value | 420 |
| 45 |
Required: Carry out a financial evaluation of the merger between X Ltd and Y Ltd.
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