Walalahai Inc. is being acquired by Walalahoi Inc. on a share exchange basis. Their selected data...
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Walalahai Inc. is being acquired by Walalahoi Inc. on a share exchange basis. Their selected data are as follows: Walalahoi Ksh. 5,600,000 1,000,000 Profits after tax Number of Shares Earnings per Share Price-Earnings Ratio 5.6 12.5 Walalahai Ksh.2,100,000 840,000 2.5 7.5 Determine: i. Pre-merger, market value per share ii. The maximum exchange ratio Walalahoi Inc should offer without dilution of a) the EPS, b) Market Value per share. (12 marks) Walalahai Inc. is being acquired by Walalahoi Inc. on a share exchange basis. Their selected data are as follows: Walalahoi Ksh. 5,600,000 1,000,000 Profits after tax Number of Shares Earnings per Share Price-Earnings Ratio 5.6 12.5 Walalahai Ksh.2,100,000 840,000 2.5 7.5 Determine: i. Pre-merger, market value per share ii. The maximum exchange ratio Walalahoi Inc should offer without dilution of a) the EPS, b) Market Value per share. (12 marks)
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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