Which of the Following Statements Is Correct Concerning the Cost

question 14

Multiple Choice

Which of the following statements is correct concerning the cost of two firms merging? The cost:

• A) is fixed when the merger is financed with cash.
• B) can be affected by postmerger gains if cash is used.
• C) decreases as the postmerger share price increases when stock is used to finance the merger.
• D) is not determined until after the merger, regardless of the type of financing.

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Definitions:

Precedence

Refers to the rules that determine the order in which operators are evaluated in expressions, guiding the execution flow in programming.

Right to Left

The direction of processing or evaluating expressions in certain programming languages or contexts, opposite to the more common left to right.

Character Constant

A fixed value representing a specific character in programming, usually enclosed in single quotes, such as 'a' or '3'.

Significant Digits

The number of digits in a number that contribute to its accuracy, usually starting from the first non-zero digit.