If the Shareholders of an Acquired Firm Capture All of the Merger's

question 73

Multiple Choice

If the shareholders of an acquired firm capture all of the merger's gain,then the:

• A) cost of the merger is zero.
• B) NPV of the merger is zero.
• C) EPS will increase.
• D) acquiring firm retains all merger benefits.

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Definitions:

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone.

Deindividuation

A psychological state where individuals in a group lose self-awareness and feel less responsible for their actions, often leading to uninhibited behavior.

Elaboration Likelihood Model

A dual-process theory describing the change of attitudes and the manner and likelihood that leads to a change through either central or peripheral route processing.

Central Route

A method of persuasion that involves thoughtful consideration of the arguments and content of a message.