Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 24, 2024

A firm with a PE ratio of 5 wants to take over a firm that is 1 / 3 of its size with a PE

A firm with a PE ratio of

5

wants to take over a firm that is

1 / 3

of its size with a PE ratio of

13 .

What will be the PE ratio of the merged firm? Give your answer to the nearest

0.1 .

Correct Answer:

5.9 \

0.05

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

Essentials Of Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

7th Edition

0073368717, 978-0073368719

More Books

Students also viewed these Finance questions

Question

★★★★★

A condenser (cooler) receives 0.05 kg/s R-22 at 800 kPa, 40oC and cools it to 15oC. There is a small pressure drop so the exit state is saturated liquid. What cooling capacity (kW) must the condenser...

Answered: 1 week ago

Question

★★★★★

In the early 2000s, selected automobiles had an average cost of $15,000. The average cost of those same automobiles is now $18,000. What was the rate of increase for these automobiles between the two...

Answered: 1 week ago

Question

★★★★★

Let X be a random variable with density function f (x) = 1 3, 0 x 3. Then we have P(X2 1) = 13.

Answered: 1 week ago

Question

★★★★★

HJ. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,500 pounds) has the following standards: The actual materials in a batch may vary from the standard...

Answered: 1 week ago

Question

★★★★★

Consider table sailors(sid, sname, rating, age) where sid is the primary key. Write SQL query for the following question: List all fields of sailors whose name contain character 'o'. * (10 Points)...

Answered: 1 week ago

Question

★★★★★

Deep Dive Analysis: Choose an active terrorist organization. Provide a brief overview of the chosen terrorist organization, including its ideology, goals, geographical presence, and historical...

Answered: 1 week ago

Question

★★★★★

Hi-Tech Commerce Co. (HTC) sells and provides service of efficient end-to-end communications and IT systems and solutions. One of the company's key products and services includes Telecom and IT...

Answered: 1 week ago

Question

★★★★★

2) See each part for the question to answer. a) Paulette is looking to decide which of two online ad campaigns (lets call them A and B) would generate the highest purchase conversion. Describe how...

Answered: 1 week ago

Question

★★★★★

1. BaCo opens its business in 20X2 and purchases merchandise on account for $88,000. In 20X2, BaCo pays $67,000 cash on the $88,000 due, sales are $145,000, and ending inventory is $24,000. BaCo's...

Answered: 1 week ago

Question

★★★★★

Miller Company's contribution format income statement for the most recent month is shown below: Total Sales (25,800 units) Variable expenses $ 232,200 139,320 Contribution margin 92,880 Per Unit $...

Answered: 1 week ago

Question

★★★★★

Tired of her current home's high electric bills, Sandra decides that her next home will have oil heat, but she is concerned about the liability hazards this might involve. To avoid a major pollution...

Answered: 1 week ago

Question

★★★★★

2. To get some practice in identifying communication styles, watch two or three television shows and attempt to identify the style of individuals portrayed on the screen. To fully develop your skills...

Answered: 1 week ago

Question

★★★★★

1. Analyze what filters were in place to block effective communication between the hospital administrators, medical staff, and affected patients.

Answered: 1 week ago

Question

★★★★★

1. Analyze your work or school environment. Identify the distractions that you face on a daily basis and defend or reject their relevance to your ability to critically think, problem solve, and...

Answered: 1 week ago

Previous Question Next Question