One of the Effects of a Merger That Can Easily

question 335

Multiple Choice

One of the effects of a merger that can easily mislead investors into overvaluing a firm is the:

• A) Appearance of earnings per share growth when no such growth exists.
• B) Change in the number of shares outstanding in an all cash merger.
• C) Increase in total assets as a result of goodwill recognition under the pooling of interest accounting system.
• D) Change in the total value of a firm under the pooling of interest accounting system.
• E) Increase in cash flows due to the additional leverage required to fund the acquisition.

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Definitions:

Left Ventricle

The chamber of the heart responsible for pumping oxygenated blood to the aorta and throughout the body.

Distributed

Spread over a wide area or among many individuals or entities, often referring to computer networks or databases.

Body

The physical structure of a living organism, including its bones, muscles, organs, and other tissues.

Sore Muscles

A common physical condition characterized by pain, stiffness, or discomfort in muscles, often after intense exercise or unusual physical activity.