An Acquiring Firm Has a Value of $500 Million and a P/E

question 64

Essay

An acquiring firm has a value of $500 million and a P/E ratio of 15.The target company has a value of $200 million and a P/E ratio if 10.It is expected that there will be $8 million gain from the merger.Given this information, determine the P/E of the merged firm and whether the P/E.

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Definitions:

ATP Channel Protein

A type of membrane protein that allows ATP molecules to move across cell membranes, often involved in cellular energy management.

Mitochondrial Matrix

The innermost compartment of mitochondria, enclosed by the inner membrane, containing enzymes for the citric acid cycle and DNA.

NADH

Nicotinamide adenine dinucleotide (NADH) is the reduced form of NAD+, an important coenzyme in cellular respiration, acting as an electron carrier.

Hydrogen Ions

Positively charged ions (H+) that are formed when hydrogen atoms lose or gain an electron and are central to acid-base chemistry.