Ruchi Industries Ltd. is planning to acquire Jyoti Industries Ltd. through merger. Based on the available information calculate: Earning per share (EPS) of both the companies. Particulars Ruchi Industries Ltd. Jyoti Indu

CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2021
Ruchi Industries Ltd. is planning to acquire Jyoti Industries Ltd. through merger. Based on the available information calculate: Earning per share (EPS) of both the companies. Particulars Ruchi Industries Ltd. Jyoti Industries Ltd. Number of Equity Shares 10,00,000 6,00,000 Earnings After Tax ₹50,00,000 ₹18,00,000 Market Value per share ₹42 ₹28

Answer & Explanation:

1. Earning per share (EPS) of both the companies Particulars Ruchi Industries Ltd Jyoti Industries Ltd No. of Equity Shares 10,00,000 6,00,000 Earnings After Tax ₹50,00,000 ₹18,00,000 Earnings per Share (EPS) ₹50,00,000 / 10,00,000 = ₹5 ₹18,00,000 / 6,00,000 = ₹3

Topics: Mergers and Acquisitions

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