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What is the price/earnings ratio of the merged firm

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Maytag merges with Whirlpool. Assume that Maytag's price/earnings ratio is 20 and Whirlpool's is 15. If Maytag accounts for 60 percent of the earnings of the merged firm, and if there are no synergies between the two merged firms, what is the price/earnings ratio of the merged firm?

Reference no: EM131414113

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