P Ltd. is studying the possible acquisition of Q Ltd. by way of merger. The following data are available: Firm After-tax earnings No. of equity…

P Ltd. is studying the possible acquisition of Q Ltd. by way of merger. The following data are available: Firm After-tax earnings No. of equity shares Market price per share Book Value Per share P Ltd. 10,00,000 2,00,000 75 210 Q Ltd. 3,00,000 50,000 60 105 The merger shall be gone through by exchange of equity shares and the exchange ratio is set according to different weights assigned to different basis as mentioned below :- EPS 50% Market Price 25% Book Value 25%