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Net Sales:837.5 (Millions) PAT:168 (Millions) Number of shares: 12,000,000 EPS:14 per share:75 P/E:5.36 Mulberry Ltd: Net Sales:295 (Millions) PAT:30 (Millions) Number of shares: 4,000,000 EPS:7.5 Market value per share:60 P/E: 8 Required: a) For the combined company (after merger), Calculate the; (i) Total Number of Shares,                                                                     (ii) EPS

Net Sales:837.5 (Millions) PAT:168 (Millions) Number of shares: 12,000,000 EPS:14 per share:75 P/E:5.36 Mulberry Ltd: Net Sales:295 (Millions) PAT:30 (Millions) Number of shares: 4,000,000 EPS:7.5 Market value per share:60 P/E: 8 Required: a) For the combined company (after merger), Calculate the; (i) Total Number of Shares,                                                                     (ii) EPS

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Market value Mango Ltd is on the final stages of take over of Mulberry Ltd. Shareholder’s of Mulberry Ltd will likely to receive 0.75 shares of Mango Ltd for each of the share held. On detailed analysis there is no operating synergy or economies of scale in the merger and the merger is on pure competition avoid basis.

Mango Ltd:

Net Sales:837.5 (Millions)

PAT:168 (Millions)

Number of shares: 12,000,000

EPS:14

per share:75

P/E:5.36

Mulberry Ltd:

Net Sales:295 (Millions)

PAT:30 (Millions)

Number of shares: 4,000,000

EPS:7.5

Market value per share:60

P/E: 8

Required:

  1. a) For the combined company (after merger), Calculate the;

(i) Total Number of Shares,                                                                    

(ii) EPS,                    

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