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ABBA. NABA Before Merger ABBA Before Merger After Merger $ 5.00 20.00 8.00 15,000 EPS $ 3.00 Price Per Share 30.00 Price Earn
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Answer #1

b. 10.00

calculations:

P/E Ratio = Current share price/ Earning (increment) in EPS

= $ 20 / ($5 - $3)

= $20 / $2 = 10.00

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