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    The document compares financial metrics like profit after tax (PAT), shares outstanding, market price per share, earnings per share (EPS), price to earnings (PE) ratio, and firm value for companies P Ltd, Q Ltd, and their combined company PQ Ltd. The solution shows that after merging, the combined company PQ Ltd would have a PAT of Rs. 1080000, 345000 shares outstanding, and a market price per share of Rs. 37.57.

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    The document compares financial metrics like profit after tax (PAT), shares outstanding, market price per share, earnings per share (EPS), price to earnings (PE) ratio, and firm value for companies P Ltd, Q Ltd, and their combined company PQ Ltd. The solution shows that after merging, the combined company PQ Ltd would have a PAT of Rs. 1080000, 345000 shares outstanding, and a market price per share of Rs. 37.57.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    5 views1 page

    Book 1

    Uploaded by

    sls4u06
    The document compares financial metrics like profit after tax (PAT), shares outstanding, market price per share, earnings per share (EPS), price to earnings (PE) ratio, and firm value for companies P Ltd, Q Ltd, and their combined company PQ Ltd. The solution shows that after merging, the combined company PQ Ltd would have a PAT of Rs. 1080000, 345000 shares outstanding, and a market price per share of Rs. 37.57.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
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    QUESTION PARTICULARS P LTD Q LTD

    PAT 900000 180000


    SHARES OUTSTANDING 300000 90000
    MARKET PRICE PER SHARE 36 20

    SOLUTION PARTICULARS P LTD Q LTD PQ LTD

    PAT 900000 180000 1080000


    SHARES OUTSTANDING 300000 90000 345000
    MARKET PRICE PER SHARE 36 20 37.57

    EPS 3 2 3.13043478
    PE RATIO 12 10 12
    FIRM VALUE 10800000 1800000 12960000

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