ABC Ltd. is planning to acquire XYZ Ltd. The following information is available in this respect: Company No. of Shares Market Price Per Share (₹)…
CA Final · Advanced Financial Management · PYQS · September 2025
ABC Ltd. is planning to acquire XYZ Ltd. The following information is available in this respect: Company No. of Shares Market Price Per Share (₹) P/E Ratio ABC Ltd. 12,00,000 16 20 times XYZ Ltd. 4,00,000 20 10 times ABC Ltd. plans to acquire the whole of XYZ Ltd. by issuing shares at its market price of 16. It is expected that the price of ABC Ltd. share will remain constant after this acquisition. Purchase Consideration is 80,00,000. Calculation up to 2 decimal places. From the information given above, choose the correct answer to the following question No. 13 to 15:
Suggested Answer and Working Notes:
Correct Answer: Option (A)
₹ 0.8 & ₹ 2.0
Topics: Mergers, Acquisitions and Corporate Restructuring
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