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What is the eps of tatu ltd

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Reference no: EM132753959

Tatu Ltd. wants to takeover Mantu Ltd. and has offered a swap ratio of 1:2 (0.5 shares for everyone share of Mantu Ltd.). Following information is provided Tatu Ltd. Mantu Ltd.

Profit after tax Equity shares outstanding (Nos.) EPS PE Ratio Market price per share f24,00,000 8,00,000 ?3 10 times f30 f4,80,000 2,40,000 f2 7 times f 14

You are required to calculate:

(i) The number of equity shares to be issued by Tatu Ltd. for acquisition of Mantu Ltd.

(ii) What is the EPS of Tatu Ltd. after the acquisition?

(Hi) Determine the equivalent earnings per share of Mantu Ltd.

(iv) What is the expected market price per share of Tatu Ltd. after the acquisition, assuming its PE multiple remains unchanged?

(v) Determine the market value of the merged firm.

Reference no: EM132753959

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