Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 19.1, Problem 2CC
Summary Introduction

To discuss: Whether the acquisition price is a good investment opportunity.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

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