Reading 26 in schweser, number 18, do not get the 1.224 what is this number?
There is a problem to paste the table here so if some one can help without inserting the table!
- Using the comparable company approach, the mean takeover premium and the estimate of the fair acquisition price for Flueger Systems are closest to a: A. 22.4% premium and a $37.12 acquisition price. B. 22.4% premium and a $40.28 acquisition price. C. 15.6% premium and a $37.12 acquisition price.
The calculation for the mean takeover premium is: Applying this value to the mean comparable company valuation calculated in Question 17 gives us: $30.33 × 1.224 = $37.12.