Question: Answer fast in 5 minutes please Question 3 Not yet answered Marked out of 5.00 Flag question A Ltd is acquiring B Ltd and will
Answer fast in 5 minutes please
Question 3 Not yet answered Marked out of 5.00 Flag question A Ltd is acquiring B Ltd and will pay consideration totally through shares. The financial data of both companies are given below: ALTD B LTD PROFITS 2200000 600000 NO. OF EQUITY SHARES 400000 300000 EPS 5.50 2 P/E RATIO 14 8 Calculate the following: 1. Market price of each company share? 2. Market Capitalization of each company 3. Find out the Exchange Ratio (Swap Ratio) if Market price of Acquiring company is Rs. 70
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