An Acquiring Firm Has a Value of $750 Million and a P/E

question 112

Essay

An acquiring firm has a value of $750 million and a P/E ratio of 17.The target company has a value of $400 million and a P/E ratio if 20.It is expected that there will be $50 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:

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The ability of an individual to quickly recover from difficulties; a form of mental toughness or elasticity.

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The systematic mass slaughter of six million Jews and millions of others by the Nazis during World War II.

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A cognitive bias where individuals overemphasize their own perspective and importance in relation to others.