May 21 2013 11:23 PM
P/E is nothing but Market Value of Share/Earning per Share
so in this Suppose MV is X then we have
therefore X = $30 which is market value of the share.
Networth of the company = 2million*$30 = 60Million
Permium = 20% so 60+60*.02= 72 million is Acquisition Price