a) Kawa Inc. is being acquired by Sync Inc on a share exchange basis. Their selected...
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a) Kawa Inc. is being acquired by Sync Inc on a share exchange basis. Their selected data are as follows: Profits after tax Number of Shares Earnings per Share Sync Ksh. 5,600,000 1,000,000 5.6 Price-Earnings Ratio 12.5 Determine: i. Pre-merger, market value per share ii. Kawa Ksh.2,100,000 840,000 2.5 7.5 The maximum exchange ratio Sync Inc should offer without dilution of a) the EPS, b) Market Value per share. (5 marks) a) Kawa Inc. is being acquired by Sync Inc on a share exchange basis. Their selected data are as follows: Profits after tax Number of Shares Earnings per Share Sync Ksh. 5,600,000 1,000,000 5.6 Price-Earnings Ratio 12.5 Determine: i. Pre-merger, market value per share ii. Kawa Ksh.2,100,000 840,000 2.5 7.5 The maximum exchange ratio Sync Inc should offer without dilution of a) the EPS, b) Market Value per share. (5 marks)
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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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