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Business, 07.05.2020 05:07 aylengarcia090

Companies A and B are valued as follows: Company A now acquires B by offering one (new) share of A for every two shares of B (that is, after the merger, there are 2500 shares of A outstanding). If investors are aware that there are no economic gains from the merger, what is the price-earnings ratio of A's stock after the merger?

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