Question 31 (1 point) Parent Company is looking to take over Target Company and is trying to value the company using the dividend based method. Target Co has just paid a dividend of 20c per share and they expect their dividends to remain constant. Target Co has estimated their Cost of Capital (required rate of return) is 12%. Target Co currently has 1 million 1 shares. 1m 2.4m 1.7m 1.67m Continuing on From the previous question. If the merger brings about additional profits for Jammy of 4million a year and the Share price of Jammy Co rises to 300 C or 3.00 What will the new P/E ratio (price/earnings) of the newly formed Company? 08.11 10.75 06.76 09.07