Chipboard Font Alignment Number 1200000 A B D E F G H 1 SECTION C (7 x 2 = 14 Marks) 2 C-Q3 Vista Group is acquiring a Rollar Toys to expand its market share. The relevant financial Information of both the firms are given in the table below, Managements of both the firms are discussing three alternative approaches to determine exchange ratio, namely (a) in proportion to earnings per share (EPS); (b) in proportion to market price per share, and (c) in proportion of equally weighted (t.e. 50% weightage to each) of earnings per share and market price per share. You are required to calculate post-merger EPS under three alternatives exchange ratios and explain which method is most value accretive to the shareholders of Rollar toys Particulars Vista Rollar Toys Post Acquisitio ns 5 2 Stock price (Rs) Number of shares Earnings per share (Rs.) Price earnings ratio het profit 300 100 2,00,000 1,00,000 6 4 50 25 12,00,000! 4,00,000 8,00,000 instructions Seca Sec B-01 Sec B-02 Soc B.Q3 SI CO Secco Secco PType here to search