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The Following Data on a Merger Are Given

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The following data on a merger are given:
The following data on a merger are given:   Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. Calculate the postmerger P/E ratio, assuming that cash is used in the acquisition and the merger has no immediate effect on total firm income. A) 12.75 B) 6.25 C) 13.75 D) 17.85
Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. Calculate the postmerger P/E ratio, assuming that cash is used in the acquisition and the merger has no immediate effect on total firm income.


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A moral or legal obligation; in commerce, it typically refers to a tax imposed on imports or exports.

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The beliefs or hopes about what is possible or likely to happen in the future.

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