Explain what happens to the postmerger earnings per share figure when a company with a relatively high

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Explain what happens to the postmerger earnings per share figure when a company with a relatively high P/E ratio acquires a company with a lower P/E ratio, assuming that the exchange ratio is based on current stock market prices and no synergy exists.

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Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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