In the Case of a Merger That Is Stock Financed

question 33

Multiple Choice

In the case of a merger that is stock financed, the assumed merger cost may be incorrect if the:

• A)Value of the acquired firm's shares changes after the merger announcement
• B)Value of the acquiring firm's shares changes after the merger announcement
• C)Long-term interest rates increase
• D)Merger is either horizontal or vertical

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Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public—by practicing sustainable and ethical operations across all aspects.

Universality

A principle or concept that is applicable or relevant across all situations, cultures, or contexts without exception.

Management Principles

Fundamental guidelines or rules for managing an organization effectively, often encompassing planning, organizing, leading, and controlling.

Archie Carroll

Archie Carroll is known for his work on corporate social responsibility (CSR), particularly for developing a pyramid model that outlines the responsibilities of businesses in society.