If the Acquiring Firm's P/E Ratio Is Greater Than the P/E

question 27

True/False

If the acquiring firm's P/E ratio is greater than the P/E of the acquired firm, the surviving firm will automatically get an increase in earnings per share.

---

Definitions:

Espoused Values

The explicitly stated values and norms preferred by an organization, which are often identified in official documents and statements.

Minority Staff

Refers to employees within an organization belonging to a racial, ethnic, cultural, or possibly gender group that is viewed as different from the majority group.

Holding Environment

A supportive space that provides containment and safety, allowing individuals or groups to explore and deal with thoughts, emotions, and experiences.

Workplace Environment

The physical and psychological conditions under which employees work, including factors such as culture, safety, and resources.