Question

Calculate
a. Pre merger market value per share for both company.
b. Post merger EPS, market value per share and price earning ratio of Kaithan Company
shareholders are offered a share of i) Rs 30 ii) Rs 56 iii) Rs 20 in share exchange for
merger.
c. Phillip Company's EPS of Kaithan Company's shareholders are offered Rs 100 , 15%
convertible debentures for each 3 shares held in Kaithan.
d. Post merger dividend or interest available to Kaithan Company's shareholders.
| Assume 50% tax rate.
(16 Marks)​

Answer 1

I am not sure.........