Which of the Following Statements About Who Receives the Net

question 31

Multiple Choice

Which of the following statements about who receives the net value changes in a merger or acquisition is true?

• A)If the acquirer purchases the target firm at a price greater than the one that existed before the acquirer entered the picture, then the target firm shareholders will receive all of the
• Merger benefits.
• B)If the acquirer purchases the target firm at a price that is equal to the value of all the net merger benefits, then all the benefits accrue to the target shareholders, and the
• Shareholders of the acquiring firm are indifferent.
• C)If the acquirer purchases the target firm at a price that is equal to the value of all the net merger benefits, then all the benefits accrue to the target shareholders, and the
• Shareholders of the acquiring firm lose money.
• D)If the acquirer purchases the target at the price that existed before the acquirer entered the picture, then all gains and losses associated with the acquisition accrue to the target firm's
• Shareholders.

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Definitions:

Strategic Priority Analysis

The process of identifying and evaluating the importance and urgency of different strategic initiatives or actions to achieve business objectives.

Integrated Analysis

Integrated analysis is a comprehensive examination that combines various data sources and methodologies to gain a complete understanding of a complex problem or situation.

Dissonance Analysis

The examination of inconsistencies between beliefs and behaviors, often applied in marketing to understand consumer decision-making processes.

Situation Assessment

An evaluation of the current state or conditions affecting a scenario or decision-making process.