Question
An acquirer with a P/E ratio of 15 and earnings of $1.66 seeks to take over another target firm with value $16.73 and P/E ratio
An acquirer with a P/E ratio of 15 and earnings of $1.66 seeks to take over another target firm with value $16.73 and P/E ratio 15. What is the new merged firm's P/E? Solve problem with exact answer and answers should be to four decimal places no rounding.
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
