Question: Focusing on the Comparable Analysis to evaluate a Target Company in a M&A deal, explain what are the main Return on investment ratios that an

  1. Focusing on the Comparable Analysis to evaluate a Target Company in a M&A deal, explain what are the main "Return on investment ratios that an investment bank can use in the analysis and discuss their meaning. Please, provide numerical examples to support your explanation.

[30 marks]

  1. Explain why, in a M&A deal, the choice of consideration affects the Earnings Per Share (EPS) of the combined firm. Please, provide a numerical example to support your explanation.

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