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Shark Co. is planning to acquire Goldfish Co. by using its own stock. The following information is taken before the acquisition. What will be the approximate P/E ratio after the acquisition? There is no synergy. Hint: you can assume that the stock price after the acquisition would be $100. EPS #of shares Stock price 3.00. 5.00. 4.00. 3.25. 4.45. 4.25. Shark Co. $20.00 400,000 $100 Goldfish Co. $30.00 100,000 $90

Shark Co. is planning to acquire Goldfish Co. by using its own stock. The following information is taken before the acquisition. What will be the approximate P/E ratio after the acquisition? There is no synergy. Hint: you can assume that the stock price after the acquisition would be $100. EPS #of shares Stock price 3.00. 5.00. 4.00. 3.25. 4.45. 4.25. Shark Co. $20.00 400,000 $100 Goldfish Co. $30.00 100,000 $90

Essentials Of Investments
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
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Shark Co. is planning to acquire Goldfish Co. by using its own stock. The following information is taken before the acquisition. What will be the approximate P/E ratio after the acquisition? There is no synergy. Hint: you can assume that the stock price after the acquisition would be $100. EPS # of shares Stock price 3.00. 5.00. 4.00. 3.25. 4.45. 4.25. Shark Co. $20.00 400,000 $100 Goldfish Co. $30.00 100,000 $90
Transcribed Image Text:Shark Co. is planning to acquire Goldfish Co. by using its own stock. The following information is taken before the acquisition. What will be the approximate P/E ratio after the acquisition? There is no synergy. Hint: you can assume that the stock price after the acquisition would be $100. EPS # of shares Stock price 3.00. 5.00. 4.00. 3.25. 4.45. 4.25. Shark Co. $20.00 400,000 $100 Goldfish Co. $30.00 100,000 $90
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