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Essay example - Cae Inc. Recommendation To Acquire
Pages 4 (1004 words)
Cae Inc. Recommendation to Acquire Institution’s name Name of Institution Cae Inc. Recommendation to Acquire Introduction CAE Inc. is a former Canadian Aviation Electronics firm which has its operations in about 20 countries…
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These recommendations are based on the previous analysis of the firm’s current performance and Strengths, Weakness Opportunities and Threats (SWOT) analysis. An accord recommendation is established by an optimal comparison of numerical figures, estimating average values to the closest integer. In most cases, a non-US based research is more suitable for determining the future of the company since the company operates internationally in 20 countries (CAE Global Academy Official site, 2012). Recommendations to Acquire With reference to the firm’s two year price target range, it is prudent to conclude that the company’s agreed price to acquire is $ 13.6 for the shares of the firm (Zacks Investment Research, 2012). The price targets are determined by approximating the future earnings per security and then making use of the multiple of price to earnings commonly known as the price earnings ratio. As shown in the diagram below it would be appropriate for the company to acquire another firm when the share price is at its highest level since the target firm will be forced to lower its share price in preference for a better performing firm such as CAE Inc. ...
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