Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 19, 2024

A firm with a P/E ratio of 21 wants to take over a firm that is half its size (in market capitalization) that has a

image text in transcribed

A firm with a P/E ratio of 21 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 32.1 42.5 28.3 D 25.3 9

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Emerald Handbook On Cryptoassets Investment Opportunities And Challenges

Authors: H. Kent Baker, Hugo Benedetti, Ehsan Nikbakht, Sean Stein Smith

1st Edition

1804553212, 978-1804553213

More Books

Students also viewed these Finance questions

Question

★★★★★

Find the gravitational force between the sun and Mercury.

Answered: 1 week ago

Question

★★★★★

Dr. Wilson is buying a 50% ownership in a veterinary practice by end-of-month payments of $714.60, including interest at 7% compounded semiannually for 15 years. Rounded to the nearest dollar, a....

Answered: 1 week ago

Question

★★★★★

Is the data interpreted (its importance and implications discussed) rather than just presented?

Answered: 1 week ago

Question

★★★★★

In December 2010, Gomez Companys manager estimated next years total direct labor cost assuming 50 persons working an average of 2,000 hours each at an average wage rate of $15 per hour. The manager...

Answered: 1 week ago

Question

★★★★★

Answered: 1 week ago

Question

★★★★★

Jeff and Jill finalized the adoption of their 4-year-old child during the tax year. Some of the costs incurred throughout the year were $2,500 paid to the licensed California adoption agency, $1,000...

Answered: 1 week ago

Question

★★★★★

2. (34%) The frame is subjected to a vertical 13 kip force at E and a horizontal 10 kip force a B. Neglect the self-weight of the frame. Find the internal forces (axial, shear, and bending moment) at...

Answered: 1 week ago

Question

★★★★★

Lightning Electronics is a midsize manufacturer of lithium batteries. The company's payroll records for the November 1-14 pay period show that employees earned wages totaling $70,000 but that...

Answered: 1 week ago

Question

★★★★★

Bob and Marcus are buying a house. They have $22000 for a down payment. The house price is $176000. They have secured a 25 year loan with an annual interest rate of 4.3% compounded monthly, Use Excel...

Answered: 1 week ago

Question

★★★★★

The pin-connected structure consists of two cold-rolled steel [E-26,000 ksil bars (1) and a bronze [E 12,000 ksi) bar (2) that are connected at pin D. Each steel bar has a cross-sectional area of...

Answered: 1 week ago

Question

★★★★★

Use the Dividend Discount Model to calculate the intrinsic value for Pepsi (PEP). Explain your assumptions for the discount rate and the expected dividend growth rate. Use the expected dividend...

Answered: 1 week ago

Question

★★★★★

You hired Kane Lawn Service to install lawn sprinklers and landscape the area surrounding your office building. For this work, Kane estimated the cost would be $12,000; you agreed to pay this...

Answered: 1 week ago

Question

★★★★★

Your student business organization has been contacted by Claudias, a clothing boutique, for help in promoting a Valentines Day sale. Claudias would like your organization to sell coupons for $5...

Answered: 1 week ago

Question

★★★★★

You and your siblings planned a party for your parents 25th wedding anniversary on October 12. As part of this celebration, you made a oral agreement with The Emotions to play live music for four...

Answered: 1 week ago

Previous Question Next Question