According to the Free-Cash-Flow Theory of Takeovers, Post-Merger Gains in Market

question 86

Multiple Choice

According to the free-cash-flow theory of takeovers, post-merger gains in market value represent:

• A)An illogical assessment of earnings prospects
• B)The remaining costs of the merger
• C)The present value of free-cash-flow that will no longer be misused
• D)Losses experienced by arbitrageurs and other speculators

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Definitions:

Class System

A form of social stratification where people are grouped into a set of hierarchical social categories, the most common being the upper, middle, and lower classes.

Closed Class System

A social stratification system where mobility between classes is limited or non-existent, and one's social status is often inherited.

Wealth

An abundance of valuable resources or material possessions.

Inherited

Traits or properties received from previous generations through genetic transmission.