A firm with a P/E ratio of 20 wants to take over a firm half its size

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A firm with a P/E ratio of 20 wants to take over a firm half its size with a P/E ratio of 50.What is the P/E ratio of the merged firm?

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Corporate Finance An Introduction

ISBN: 9780321277992

1st Edition

Authors: Ivo Welch

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Question Posted: Oct 26, 2024 04:02 AM

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A firm with a P/E ratio of 20 wants to take over a firm half its size with a P/E ratio of 50.What is the P/E ratio of the merged firm?
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A firm with a P/E ratio of 20 wants to take over a firm half its size

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Corporate Finance An Introduction

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