QUESTION 35 Caren Ltd has earnings of $200,000, has 150,000 shares on issue, and the shares are priced at $10 per share. Denise Ltd has earnings of $100,000, has 100,000 shares on issue, and the shares are priced at $5 per share. What will the price earnings ratio of the combined entity be if Caren Ltd issues one of its share for every two Denise Ltd shares?
QUESTION 35 Caren Ltd has earnings of $200,000, has 150,000 shares on issue, and the shares are priced at $10 per share. Denise Ltd has earnings of $100,000, has 100,000 shares on issue, and the shares are priced at $5 per share. What will the price earnings ratio of the combined entity be if Caren Ltd issues one of its share for every two Denise Ltd shares?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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![QUESTION 35
Caren Ltd has earnings of $200,000, has 150,000 shares on issue, and the shares are priced at $10 per
share. Denise Ltd has earnings of $100,000, has 100,000 shares on issue, and the shares are priced at
$5 per share. What will the price earnings ratio of the combined entity be if Caren Ltd issues one of its
share for every two Denise Ltd shares?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff667eac6-9de9-4a6b-adab-7aac124b4270%2Fb0d626a0-03cd-48c0-8e8d-8026f5adca69%2F9mtd0ao_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 35
Caren Ltd has earnings of $200,000, has 150,000 shares on issue, and the shares are priced at $10 per
share. Denise Ltd has earnings of $100,000, has 100,000 shares on issue, and the shares are priced at
$5 per share. What will the price earnings ratio of the combined entity be if Caren Ltd issues one of its
share for every two Denise Ltd shares?
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