Mergers That Attempt to Bootstrap Earnings May Obtain Increased Current

question 44

Multiple Choice

Mergers that attempt to bootstrap earnings may obtain increased current earnings per share at the expense of:

• A)A higher price-earnings ratio
• B)Higher total combined market value
• C)Reduced future growth prospects
• D)Increased free-cash-flow

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Definitions:

Upward Communication

Communication that flows from subordinate to superior.

Interpersonal Communication

The exchange of information, feelings, and ideas between two or more people through verbal or non-verbal methods.

Link

A reference or connection from one piece of information or webpage to another, facilitating easy access and navigation between them.

Managing Up

The practice of managing one's relationship with and influence on superiors or higher-ups in an organization.