In a merger, Company A (profit ₹10,00,000, 2,00,000 shares) acquires Company B (profit ₹5,00,000, 1,00,000 shares). A issues 1 share for every 2 shares of B. What is the post-merger EPS of Company A?
A. ₹5.00
B. ₹7.00
C. ₹5.60
D. ₹6.00
Answer: Option D
Solution (By JKSSB Mock Tests)
Total Post-merger Profit = 10,00,000 + 5,00,000 = ₹15,00,000. New shares issued by A = 1,00,000 / 2 = 50,000. Total shares of A = 2,00,000 + 50,000 = 2,50,000. Post-merger EPS = 15,00,000 / 2,50,000 = ₹6.00.
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