Kindly help on how they were finding PE for Tidded in question 2,its confusing
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Luoieed June2016
6y ago#1In all cases, the PE ratio implied is the amount paid per share divided by the earnings per share.
The earnings per share are $1.42 for all of them.
The amount being paid for option (i) is the value of 2 shares in Louieed; for option (ii) it is the cash offer of $22.75 per share, and for option (iii) it is the the weighted average of 60% of the value of 2 shares in Louieed and 40% of the cash offer.
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