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The Following Data on a Merger Is Given: Firm

Question 72

Multiple Choice

The following data on a merger is given: The following data on a merger is given: Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. Calculate the post merger P/E ratio assuming cash is used in the acquisition. A) 12.75 B) 6.25 C) 13.75 D) None of the above Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. Calculate the post merger P/E ratio assuming cash is used in the acquisition.


A) 12.75
B) 6.25
C) 13.75
D) None of the above

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