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Cliff Corp (CC) has a P0/E1 ratio of 30 and value of $600 million. CC wants to purchase a firm with a value of $100

Cliff Corp (CC) has a P0/E1 ratio of 30 and value of $600 million. CC wants to purchase a firm with a value of $100 million and a P0/E1 ratio of 50. What is the P0/E1 ratio of the combined firm? What is the value of the combined firm? What are the expected earnings of the combined firm?

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