You have been provided the following Financial data of two companies: Krishna Rs. 7,00,000 2,00,000 3.5 Particulars Earnings after taxes Equity shares (outstanding) EPS P/E ratio Market price per share 10 times Rs. 35 Rama Rs. 10,00,000 4,00,000 2.5 same 14 times Rs. 35 Company Rama Ltd. is acquiring the company Krishna Ltd., exchanging its shares on a one- to-one basis for company Krishna Ltd. The exchange ratio is based on the market prices of the shares of the two companies. Required: a. What will be the EPS subsequent to merger? b. What is the change in EPS for the shareholders of companies Rama Ltd. and Krishna Ltd.? c. Determine the market value of the post-merger firm. PE ratio is likely to remain the