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Revisit Later Question 3 Companies A and B are valued as follows: A B No of shares 2000 1000 EPS 10 10 Share Price 100

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Revisit Later Question 3 Companies A and B are valued as follows: A B No of shares 2000 1000 EPS 10 10 Share Price 100 50Company A now acquires B by offering one (new) share of A for every two shares of B (that is, after the merger, there are 2500 shares of A outstanding). If investors are aware that there are no economic gains from the merger, what is the price-earnings ratio of A's stock after the merger? Haren aica H Jeni

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