Which of the Following Is NOT a Correct Statement of a Reason

question 224

Multiple Choice

Which of the following is NOT a correct statement of a reason why computation of NPV in a merger or an acquisition may be complicated?

• A) Sometimes poison pills or greenmail provisions may exist
• B) Acquisitions are an important control device for stockholders
• C) The tax, accounting, and legal issues involved are lengthy
• D) Mergers and acquisitions are sometimes friendly
• E) The benefits of a merger or acquisition sometimes depend on strategic fits

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Definitions:

Negatively Skewed Distribution

A probability distribution that is skewed to the left, indicating that the tail on the left side of the probability density function is longer or fatter than the right side.

Negative Correlation Coefficient

A statistical measure indicating that as one variable increases, the other variable tends to decrease.

Linear Relationship

A type of connection between two variables where the change in one is directly proportional to the change in the other.

Positively Skewed Distribution

A type of distribution where the tail on the right side of the distribution's peak is longer or fatter than the left side, indicating that the bulk of the values lie to the left of the mean.