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:

Ovulation

The release of an egg (ovum) from the ovary, typically occurring midway through the menstrual cycle.

Pap Test

A screening procedure for cervical cancer that involves collecting cells from the cervix and examining them under a microscope to detect abnormalities.

Cervical Cancer

A malignant tumor of the cervix, the lower part of the uterus, often caused by the human papillomavirus (HPV).

Ovarian Cancer

A type of cancer that originates in the ovaries, characterized by the abnormal growth of cells that can invade or spread to other parts of the body.