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ABBA NABA ABBA Before Merger Before Merger After Merger EPS $ 3.00 $ 5.00 Price Per Share 30.00 20.00 Price Earnings (P/E) 11.50 8.00 No

ABBA NABA ABBA

Before Merger Before Merger After Merger

EPS $ 3.00 $ 5.00

Price Per Share 30.00 20.00

Price Earnings (P/E) 11.50 8.00

No of Shares 30,000 15,000

Total Outstanding

Earnings $80,000 $40,000

Total Value __ ___

Use this information to answer the following questions

What is the P/E ratio?

A.

0.10

B.

10.00

C.

20.00

D.

30.00

E.

none

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