Which of the Following Is a Correct Statement

question 184

Multiple Choice

Which of the following is a correct statement?

• A) EPS growth cannot occur as the result of an acquisition.
• B) EPS growth cannot occur from an acquisition unless it creates no additional value.
• C) Stockholders can achieve diversification on their own.
• D) Diversification is usually beneficial in a merger because it reduces systematic risk.
• E) Diversification, by itself, is one reason that value may be created in a merger.

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