If a Merger Creates Synergy, Then The

question 31

Multiple Choice

If a merger creates synergy, then the:

• A) merger is classified as a taxable transaction.
• B) acquiring firm's shareholders will receive a one-time cash payment.
• C) equity of the target firm will be increased by the amount of the synergy.
• D) value of the merged firm exceeds the combined value of the separate firms.
• E) price paid by the acquiring firm will be reduced by the amount of that synergy.

---

Definitions:

Physiological Arousal

Refers to the body's physical response to stimuli, which can include increased heart rate, heightened senses, and a surge of adrenaline.

Primary Appraisal

The initial evaluation process in coping where an individual assesses the significance of an event as a threat, challenge, or harm.

Secondary Appraisal

The process where an individual evaluates their ability to cope with the consequences of a potential stressor after initially considering its threat level.

Bar Mitzvah

A Jewish coming-of-age ceremony for boys reaching the age of 13, marking their religious maturity and responsibility to observe Jewish commandments.