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O'Neal Corporation acquires Bryant Corporation by offering one share of the acquirer for every two shares of the target. If investors are aware that there
O'Neal Corporation acquires Bryant Corporation by offering one share of the acquirer for every two shares of the target. If investors are aware that there are no economic gains from the merger, what is the post-merger price-earnings (P/E) ratio ofO'Neal Corporation's stock?Two companies are valued as below.(Round to the nearest hundredth. e.g., 0.16666 must be expressed as 0.17).
Number of Shares Outstanding A B
EPS 2000 1300
EPS 10 10
Share Price 100 50
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