Question: Answer this question correctly and detailed calculation and explanation Question 4 (a) Describe the purpose of corporate restructuring and explain the terms of merger, leveraged

Answer this question correctly and detailed calculation and explanation

Question 4 (a) Describe the purpose of corporate restructuring and explain the terms of merger, leveraged buyout (LBO) and divestitures. (16 marks) (b) JT Company is considering the acquisition of TT Company in a stock swap transaction. Currently, JT's stock is selling for RM15 per share. Although TT's shares are currently trading at RM8 per share, the company is asking for a price of RM18.75 per share. Required: If JT accepts TT's terms, what is the ratio of exchange? (3 marks) (1i) If TT has 20,000 shares outstanding, how many new shares must JT issue to consummate the transaction? (2 marks) (iii) If JT has 200,000 shares outstanding before the acquisition and earnings for the merged company are estimated to be RM400.090. what is the EPS for the merged company? (4 marks)

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