Question: QUESTION FOUR Nyayo Enterprises (NE) is considering two possib e accus tions. Company and B. NE is interested in making any acquisition that increases its


QUESTION FOUR Nyayo Enterprises (NE) is considering two possib e accus tions. Company and B. NE is interested in making any acquisition that increases its current carning per sharc. Acquisition will be byfexchanging of share mergers Required clearly indicated the number and value of new sharcs to be issucd. (25 marks) Fill the table below indi COMPANY Harning After tax (sh million) Pricc-to-Earning Ratio Market value of lEquity (Sh' million) Number of equity shares (millions) Earnings por share Price per sharc Maximum new shares issued (millions) 3 30 832 2 2 Value of new sharcs issued (Sh' millions) QUESTION FOUR Nyayo Enterprises (NE) is considering two possib e accus tions. Company and B. NE is interested in making any acquisition that increases its current carning per sharc. Acquisition will be byfexchanging of share mergers Required clearly indicated the number and value of new sharcs to be issucd. (25 marks) Fill the table below indi COMPANY Harning After tax (sh million) Pricc-to-Earning Ratio Market value of lEquity (Sh' million) Number of equity shares (millions) Earnings por share Price per sharc Maximum new shares issued (millions) 3 30 832 2 2 Value of new sharcs issued (Sh' millions)
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