A Ltd is acquiring B Ltd and will pay consideration totallythrough shares.The financial data of both companies are given below :A LTDB LTDPROFITS800000300000NO.OF EQUITY SHARES400000200000EPS21.5P/E RATIO127Calculate the following:1. Market price of each company share?2. Market Capitalization of each company3. Find out the Exchange Ratio(Swap Ratio)

Market capitalization is market value of equity.

Answered: Ltd is acquiring B Ltd and will pay…

Ltd is acquiring B Ltd and will pay consideration totally rough shares. e financial data of both companies are given below : A LTD B LTD ROFITS 800000 30000 D.OF EQUITY SHARES 400000 20000 PS 2 1.5

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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