An Increase in Earnings Per Share After a Merger May

question 65

Multiple Choice

An increase in earnings per share after a merger may not indicate increased value if the:

• A) number of shares has increased.
• B) price of the acquirer's stock increases.
• C) price-earnings ratios were different in the premerger firms.
• D)firm's additional earnings are spent on legal expenses of the merger.

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Definitions:

Model

In science and engineering, a model is an abstract representation meant to study, simulate, or explain the behavior of real systems or phenomena.

Discriminative Stimulus

A stimulus in the presence of which a particular response will be reinforced, used in behavioral psychology to study learning and conditioning.

Response-Outcome Relations

The understanding or concept in psychology that focuses on how actions (responses) are connected to their consequences (outcomes).

Species-Specific Predispositions

Innate behavioral tendencies or characteristics that are unique to particular species, influencing their ability to learn or react in specific ways.