If the P/E Paid Is Less Than the P/E of the Acquiring

question 98

Multiple Choice

If the P/E paid is less than the P/E of the acquiring company, the effect on the earnings per share of the acquired company will be

• A) uncorrelated.
• B) neutral.
• C) positive.
• D) negative.

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Definitions:

Household Type

A classification based on the composition and connections of individuals living within a domestic unit.

Blended Family

A family composed of a couple and their children from this and all previous relationships, emphasizing the merging of two separate families into one new unit.

HIV/AIDS

A virus (HIV) that attacks the immune system and can lead to the disease AIDS, a condition where the body cannot fight off infections effectively.

Sexually Restrictive

Societies or policies that place strict rules and limitations on sexual behavior and expression.