Consider the Following Two Statements: (I) the More Predictable Cash

question 30

Multiple Choice

Consider the following two statements: (i) The more predictable cash flows of acquirer and target, the easier it is to assess merger
Synergies.
(ii) Because of the merger, the synergies are equally shared between acquirer and target.

• A)(i) is correct, (ii) is incorrect.
• B)(ii) is correct, (i) is incorrect.
• C)Both (i) and (ii) are correct.
• D)Both (i) and (ii) are incorrect.
• E)(ii) is only correct if acquirer and target are equally big.

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Definitions:

Sinus

Hollow in a bone or other tissue; enlarged channel for blood or lymph.

Zygomatic Bone

A bone on the side of the skull forming the prominence of the cheek and contributing to the orbits surrounding the eyes.

Nasal Bone

One of a pair of small bones forming the upper part of the bridge of the nose.

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spine that acts as a cushion for the brain's cortex, providing basic mechanical and immunological protection to the brain.