It is possible for the postmerger P/E ratio to move in a direction opposite to that of

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It is possible for the postmerger P/E ratio to move in a direction opposite to that of the immediate postmerger earnings per share. Explain why this could happen.

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Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Question Posted: Oct 14, 2014 07:51 AM

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It is possible for the postmerger P/E ratio to move in a direction opposite to that of

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If earnings per share show an immediate appreciation the acquiring firm may b...View the full answer

Foundations of Financial Management

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