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The post-merger P/E ratio can move in a direction opposite to that of the immediate post-merger earnings per share. Explain why this could happen

by ajinkyakolhe | Jun 20, 2024 | Solutions

Foundations of Financial Management(18th ed). McGraw-Hill Higher Education (US) Chapter 20 Exercise 7 The earnings are equivalent to the E in the P/E in the P/E ratio. By extension, the underlying question is in terms of the relation between the post-merger share...

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