Question: Explain Briefly and not in excel. A Ltd B Ltd Profit after Tax Rs. 300000 1,00,000 Outstanding Equity Shareholding 50,000 12000 P/E Multiple 6 4

Explain Briefly and not in excel.
A Ltd B Ltd Profit after Tax Rs. 300000 1,00,000 Outstanding Equity Shareholding 50,000 12000 P/E Multiple 6 4 A Ltd. takes over B Ltd and the merger takes place by exchange of equity shares at market price. Compute the following: 1. Pre Take over EPS of A Ltd. & B Ltd. 2 Marks 2. Pre Take over Market price of A Ltd.& B Ltd. 2 Marks 3. Exchange Ratio 2 Marks 4. Post Takeover EPS of A Ltd. 4 Marks
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