How Combined value of A&B= Combined PAT x P/E Ratio? Can anyone please explain because Combined value should be Post merger price x Combined no. of shares
By both formula u derived the post merger value.... Break PAT *P/E RATIO..... P/E RATIO =PRICE/EARNINGS..... AND EARNINGS =PAT/NO OF SHARES..... AND THEN U ARRIVED AT PRICE *NO OF SHARES.... both formula is same