Ruchi Industries Ltd. is planning to acquire Jyoti Industries Ltd. through merger. Based on the available information calculate: EPS of the merged company. Particulars Ruchi Industries Ltd. Jyoti Industries Ltd. Number o
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: EPS of the merged company. 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:
2. EPS of the merged company Number of Shares Jyoti Industries will get in the Merged Company = (₹28 / ₹42) * 6,00,000 = 4,00,000 Total Number of Equity shares of the merged company = 10,00,000 + 4,00,000 = 14,00,000 Total Earnings of the merged company = ₹50,00,000 + ₹18,00,000 = ₹68,00,000 Earning per share (EPS) of the merged company = ₹68,00,000 / 14,00,000 = ₹4.86
Topics: Mergers and Acquisitions
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