Which of the Following Would Not Enhance the Value of a Target

question 52

Multiple Choice

Which of the following would not enhance the value of a target from the acquirer's perspective?

• A)Expected sales of the target have increased.
• B)The subsidiary's currency is expected to strengthen aFter the acquisition.
• C)The required rate of return from investing in the target has increased.
• D)All of the above would enhance the value of the target.

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Definitions:

Accounts Payable

Liabilities to creditors that must be paid within a short period, usually less than a year.

Operating Activities

Activities that constitute the primary or main activities of an organization, including production, sales, and delivery of services.

Cash Dividend

A cash distribution given to shareholders from the company's earnings.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and stockholders' equity at a specific point in time.