For the Bidder to Enjoy an Increase in EPS Following

question 10

Multiple Choice

For the bidder to enjoy an increase in EPS following a series of acquisitions, and in effect, play the P/E game, the following must be true:

• A) Post-deal P/E ratio must not decline
• B) Acquirer must pay continually lower premiums with each deal
• C) The bidder must make fewer deals over time
• D) None of the above

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Definitions:

Frustrated Contract

A contract that, through no fault of either party, is unable to be fulfilled due to an unforeseen event, leading to its termination.

Implied Term

A provision not explicitly stated but understood to be included in a contract or agreement by virtue of the law or the nature of the agreement.

Continued Good Health

The ongoing state of physical and mental well-being without significant illnesses or medical conditions.

Laches

A legal doctrine used to dismiss claims where a party unjustifiably delays taking action to the detriment of another.