The PE ratio is a measure of:

		The multiple that the market is willing to pay for the company's last reported earnings
		The company's earnings divided by number of shares
		Company's earnings divided by share price
		The amount of dividends divided by share price

Which of the following is an advantage to the acquiring firm of using cash as payment for an acquisition?

		Helps liquidity of acquiring firm
		Avoids a CGT liability for the target company shareholders
		Helps acquiring firm maintain control of the group
		Maximises the benefits of the merger for the acquiring firm

Mac Plc acquires Windows Plc in a one for four share exchange.

Mac Plc had 200,000 issued shares pre-acquisition, and Windows Plc had 50,000 issued shares pre-acquisition.

How many issued shares will there be in the post-acquisition group?

		250,000
		212,500
		262,500
		300,000