The company X Ltd. proposes to take over Y Ltd. The chief executive of a company thinks that shareholders always look for the earnings per share.…

The company X Ltd. proposes to take over Y Ltd. The chief executive of a company thinks that shareholders always look for the earnings per share. Therefore, he considers maximization of the earnings per share as his company's objective. The following information is available in respect of X Ltd. and Y Ltd. X Ltd. Y Ltd. Net Profit 80 Lakh 15.75 Lakh P/E ratio 10.50 15.75 Current market price per share 42 85 From the information given above, choose the correct answer to the Question no. 1 to 3: (3 x 2 = 6 Marks)