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What will the price-earnings ratio of the combined entity be

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Reference no: EM132931510

Problem 1: Caren Ltd has earnings of $200,000, has 150,000 shares on issue, and the shares are priced at $10 per share. Denise Ltd has earnings of $120,000, has 100,000 shares on issue, and the shares are priced at $5 per share. What will the price-earnings ratio of the combined entity be if Caren Ltd issues one of its shares for every two Denise Ltd shares?

Reference no: EM132931510

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