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Tex Berhad is acquiring Tus Berhad. The available information about the companies are as follows: Common Stock (Par value RM0.50) Earnings After Tax RM250.000

Tex Berhad is acquiring Tus Berhad. The available information about the companies are as follows: Common

Tex Berhad is acquiring Tus Berhad. The available information about the companies are as follows: Common Stock (Par value RM0.50) Earnings After Tax RM250.000 Dividend paid to Preferred Shareholders RM50.000 Price Earnings Ratio 18 times Compute: Tex Berhad RM100,000 (i) Pre-merger earnings per share for both companies. (iii) Post-merger earning per share (ii) Share exchange ratio for this merger based on market price Tus Berhad RM50,000 RM150,000 RM20,000 9 times (5 marks) (5 marks) (5 marks)

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