Question
A firm with a P/E ratio of 17 wants to take over a firm that is half its size (in market capitalization) that has a
A firm with a P/E ratio of 17 wants to take over a firm that is half its size (in market capitalization) that has a P/E ratio of 43. What would be the P/E ratio of the merged firm?
A) 25.7
B) 38.5
C) 21.3
D) 28.5
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Renewable Energy Finance Powering The Future
Authors: Charles W. Donovan
1st Edition
178326778X, 9781783267781
