Tex Berhad is acquiring Tus Berhad. The available information about the companies are as follows:...
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Tex Berhad is acquiring Tus Berhad. The available information about the companies are as follows: Tex Berhad Tus Berhad Common Stock (Par value RM0.50) RM100,000 RM50,000 Earnings After Tax RM250.000 RM150,000 Dividend paid to Preferred Shareholders RM50.000 RM20,000 Price Earnings Ratio 18 times 9 times
Compute:
(i) Pre-merger earnings per share for both companies. (ii) Share exchange ratio for this merger based on market price (iii) Post-merger earning per share
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