hard · Investment Banking
BetaGrowth Co. is trading at 20x LTM P/E. It acquires TargetSteady at 10x LTM P/E in a 100% stock deal.
If TargetSteady contributes 25% of the combined Net Income, what percentage of the pro-forma company will TargetSteady's former shareholders own?
- 12.5%
- 25.0%
- 14.3%
- 20.0%
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