After a merger with Velo Blind, Sunlite's earnings per share are $1.50. If Sunlite had a P/E ratio of 14 times before the merger and a price of $28 a share after the merger, what is Sunlite's post-merger P/E?

Question

Quizplus · Accepted Answer

The post-merger P/E ratio is calculated by dividing the share price by the earnings per share (EPS). With a share price of $28 and an EPS of $1.50, the P/E ratio is $28 / $1.50 = 18.7.

After a Merger with Velo Blind, Sunlite's Earnings Per Share