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TCs Ltd. acquires HCL Ltd., MPS of HCL Ltd. Is Rs.20 and EPS is Rs. 5 for an exchange ratio of 1.5: 1, what was the PE ratio used in acquiring HCL Ltd.?

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Question:

TCs Ltd. acquires HCL Ltd., MPS of HCL Ltd. Is Rs.20 and EPS is Rs. 5 for an exchange ratio of 1.5: 1, what was the PE ratio used in acquiring HCL Ltd.?

A.

rs. 4

B.

rs. 5

C.

rs. 6

D.

rs. 2.67

Answer» c. rs. 6

Note: The above multiple-choice question is for all general and Competitive Exams in India.