One Indication That Investors Expect No Synergy from a Merger

question 61

Multiple Choice

One indication that investors expect no synergy from a merger would be that:

• A) total market value of the merged firms does not change.
• B) the P/E ratio of the merged firms changes.
• C) the acquiring firm financed the merger with cash.
• D) the merged firms are from different industries.

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Definitions:

Series Path

A series path refers to an electrical circuit configuration where components are arranged in a sequence, one after another, allowing current to flow through one component to the next.

Parallel Path

A concept in electronics and computing where multiple pathways allow for concurrent processing or transmission of signals or data, enhancing speed and efficiency.

Input Instructions

In a programming context, these are commands or codes used to specify the type of data being introduced into a system or to control how an input device should provide data.

Input Modules

Input Modules are devices or circuits that accept data or signals from user interfaces or sensors to be processed by a control system.