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Consider the scenario down below, where Company A plans to Consider the scenario shown below, where Company A plans to acquire Company B for a

Consider the scenario down below, where Company A plans to Consider the scenario shown below, where Company A plans to acquire Company B for a 25% premium, citing significant potential long-term synergies:
Company A keeps Company B's Cash and Debt in place and does nothing with them. Assume there are no
transaction or financing fees, and ignore items like the new D&A on Asset Write-Ups for simplicity.
Based on this information, what are the Combined Company's TEV / EBITDA and P / E multiples immediately after
the deal is announced? A) Combined TEV / EBITDA =13.0x; Combined P/E =28.8x B) Combined TEV / EBITDA =13.0x; Combined P/E =25.0x C) Combined TEV / EBITDA =14.7x; Combined P/E =20.8x D) TEV / EBITDA =14.7x; Combined P / E =23.3x
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