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:

Plant Asset

Long-term tangible assets used in the production of goods and services, such as machinery, buildings, and equipment.

Accumulated Depreciation

The total amount of an asset's cost that has been expensed since the asset was acquired and put into use.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since that asset was acquired and put into use.

Disposed

Refers to the act of selling, throwing away, or giving away property, or the dealing with something that is no longer useful or required.