Luoieed June2016

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February 23, 2020 at 5:58 am #562782
elizazhinga5
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Kindly help on how they were finding PE for Tidded in question 2,its confusing
February 23, 2020 at 11:31 am #562809
John Moffat
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In 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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