What is the price/earnings ratio of the merged firm

Assignment Help Finance Basics

Reference no: EM131414113

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

Questions Cloud

What is the pv of these cash flow : Jones Inc. is considering a prospective project with the following future cash inflows: $9,000 at the end of year 1, $9,500 at the end of 15 months, $10,500 at the end of 30 months, and $11,500 at the end of 38 months.

What are some main points that your audience : An introduction that contextualizes the main issue that your essay will be addressing: what key terms need to be defined for your audience? What are some main points that your audience will need to know to have a clear idea about the issue?

Positive effects of the price ceiling : Let's say that the government imposes a price ceiling on gasoline, what would be the positive effects of the price ceiling?

Discuss current interventions by public health : Provide a 3 to 5-page Microsoft Word document that includes the following: Discuss current interventions by public health and medical care professionals for the health issue that you have selected

What is the price/earnings ratio of the merged firm : 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?

What is the role of psychologist in helping to stem the tide : The times in which we live have often been referred to as the "Age of Anxiety" for many reasons. In fact, depression and anxiety are the most commonly diagnosed mental disorders. That being said, what are the political and social factors that give..

Main points or idea of the article : Write-up 2 paragraphs about this article: The first paragraph is the summary in which you describe what the article is about. Use your own words to explain the main points or idea of the article.

Kenyan government embarked on a keynesian : 1. In the 1950s, facing massive unemployment in the cities (much of it disguised in the informal sector), the Kenyan government embarked on a "Keynesian" policy of creating new urban jobs through public investment.

Compute the difference between these two values : In year 1, the firm has the option of running the plant at less than full capacity.

User Account

All Pages