Only If a Target Firm's Value Is Greater to the Acquiring

question 1

True/False

Only if a target firm's value is greater to the acquiring firm than its market value as a separate entity will a merger be financially justified.

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Definitions:

Excitatory

Referring to substances or signals that increase the activity of the brain or other body systems, potentially leading to heightened arousal or action.

GABA

GABA (gamma-aminobutyric acid) is the main inhibitory neurotransmitter in the nervous system, playing a critical role in reducing neuronal excitability and regulating muscle tone.

Glutamate

An amino acid that acts as a neurotransmitter in the central nervous system.

Acetylcholine

A neurotransmitter in the nervous system that plays complex roles in transmitting nerve impulses at synapses, including muscle stimulation, attention, arousal, and memory.