AB Limited is studying the possible acquisition of CD Ltd. by way of a merger. The following
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AB Limited is studying the possible acquisition of CD Ltd. by way of a merger. The following data is available.
Particulars | AB Ltd | CD Ltd |
ProfitsafterTax (PAT) | INR 60,00,000 | INR 10,00,000 |
No. of equity shares | 10,00,000 | 2,00,000 |
Market value per share | INR 200 | INR160 |
If the merger goes through and the exchange ratio is based on current market prices, what is the new EPS for AB Ltd.?
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
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