Which One of the Following Statements Is Correct

question 278

Multiple Choice

Which one of the following statements is correct?

• A) A firm must realize some synergy as a result of a merger if the earnings per share of the acquiring firm increase.
• B) Any diversification achieved through a merger is valued by investors.
• C) Any increase in earnings per share due to a merger provides financial reasoning for an increase in the stock price per share.
• D) Firms with surplus cash need to justify an acquisition as having a business purpose other than the avoidance of a dividend distribution.
• E) Diversification is one of the greatest benefits derived from an acquisition.

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Definitions:

Secondary Data

Secondary data refers to information that was collected by another party for a purpose other than the current research need.

Syndicated Study

Research conducted by an organization that is then made available for purchase to multiple companies, often within the same industry.

Primary Data

Information collected first-hand through surveys, interviews, or experiments for a specific research purpose.

Marketing Research Process

A systematic approach to collecting, analyzing, and interpreting data to inform marketing decisions.