AES Ltd. wants to acquire DNF Ltd. and has offered a swap ratio of 1:2 (0.5 shares for every one share of DNF Ltd.). Following information is…
CA Final · Advanced Financial Management · MTP · May 2024
AES Ltd. wants to acquire DNF Ltd. and has offered a swap ratio of 1:2 (0.5 shares for every one share of DNF Ltd.). Following information is provided: AES Ltd. DNF Ltd. Profit after tax 36,00,000 7,20,000 Equity shares outstanding (Nos.) 12,00,000 3,60,000 PE Ratio 10 times 7 times Market price per share 30 14 On the basis of above information, choose the most appropriate answer to the following questions:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
1,80,000
Topics: Security Valuation, Mergers, Acquisitions and Corporate Restructuring
Related Questions in this Topic
- Rahul Ltd. has surplus cash of ₹ 100 lakhs and wants to distribute 27% of it to the shareholders. The company decides to...
- Shares of V Ltd. are currently quoted at a trailing Price-to-Earnings (P/E) ratio of 8 times. As per the existing policy...
- Mr. A is thinking of buying shares at 500 each having face value of 100. He is expecting a bonus at the ratio of 1: 5 du...
- The data given below relates to a convertible bond: Face value 1,000 Coupon rate 12% No. of shares per bond...
- XYZ Ltd. recently paid a dividend of 40. The company is entering a 5-year transition phase where its current 15% growth ...