Question
Shark Co. is planning to acquire Goldfish Co. by using its own stock. The following information is taken before the acquisition. What will be the
Shark Co. is planning to acquire Goldfish Co. by using its own stock. The following information is taken before the acquisition. What will be the approximate P/E ratio after the acquisition? There is no synergy. Hint: you can assume that the stock price after the acquisition would be $100.
| Shark Co. | Goldfish Co. |
EPS | $20.00 | $30.00 |
# of shares | 400,000 | 100,000 |
Stock price | $100 | $90 |
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To calculate the approximate PE PricetoEarnings ratio for Shark Co after the acquisition of Goldfish ...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
