You are using the following three criteria to screen potential acquisition targets from a list of 500

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You are using the following three criteria to screen potential acquisition targets from a list of 500 companies:
Fraction of the 500 Companies
Criterion.....................................................................Meeting the Criterion
Product lines compatible.........................................................0.20
Company will increase combined sales growth rate......................... 0.45
Balance sheet impact manageable...............................................0.78
If the criteria are independent, how many companies will pass the screen?
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Quantitative Investment Analysis

ISBN: 978-1119104223

3rd edition

Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle

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