Answered step by step
Verified Expert Solution
Question
1 Approved Answer
x company ltd intends to take over y company ltd. the financial information is provided. X Co. Ltd Y Co. Ltd Earnings per share 2
| x company ltd intends to take over y company ltd. the financial information is provided. | |||
| X Co. Ltd | Y Co. Ltd | ||
| Earnings per share | 2 | 2 | |
| Market price per share | 100 | 40 | |
| Price earnings ratio | 50 | 20 | |
| Number of shares (in 000) | 100 | 250 | |
| Profit after tax (in 000) | 200 | 500 | |
| Total market value | 10,000 | 10,000 | |
| Required: | |||
| Carry out a financial evaluation of the merger between X Ltd and Y Ltd. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Times Guide To The Financial Markets
Authors: Glen Arnold
1st Edition
0273730002, 978-0273730002
