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Your company has eamings per share of $4.26. it has 1.1 million shares outstanding. each of which has a price of $51. You are thining

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Your company has eamings per share of \$4.26. it has 1.1 million shares outstanding. each of which has a price of $51. You are thining of buying TarpetCo, which has eamings per share of 52.13 , 1.8 milion shares outstonding, and a price per share of $24. You wal pay for TargetCo by issuing new shares. There aro no expocted aynergles from the transaction. If companies in ghe mame industry as TargetCo are trading at multiples of 12 times eamings, what would be one estimate of an appropriate premium for targetCo? (Select from the drop-down menus.) TargetCo has \$2.13 in eamings, so it other comparies in its industry are trading at 12 times eamings, then a starting point for a valuation of TargetCo in this thansaction moht be implying a premium

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