Question

Company A shares are currently trading at $40 per share. A survey of Wall Street analysts reveals that EPS expectations for Company A for the full year 2014 are $3.50 per share. Company A has 200 million diluted shares outstanding. Company A's major competitors are trading at an average share price / 2014 Expected EPS of 22.0x. When gathering financial documents in preparation for comparable transaction analysis for publicly traded target companies, in addition to any filed merger documents: a. Use the most recently available financials (10-K's and 10-Q's)
b. Use the most recently available financials (10-K's and 10-Q's) as of the announcement date
c. Use the most recently available financials (10-K's and 10-Q's) as of the closing date
d. None of the above

Answer 1

a. Use the most recently available financials (10-K's and 10-Q's)