If an Acquisition Does Not Create Value,then The

question 81

Multiple Choice

If an acquisition does not create value,then the:

• A) earnings per share of the acquiring firm must be the same both before and after the acquisition.
• B) earnings per share can change but the stock price of the acquiring company should remain constant.
• C) price per share of the acquiring company should increase because of the growth of the firm.
• D) earnings per share will most likely increase while the price-earnings ratio remains constant.
• E) price-earnings ratio should remain constant regardless of any changes in the earnings per sharE.

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Definitions:

Specialized Skill

A high level of proficiency in a specific type of work or activity, which typically requires significant training and experience to develop.

Employment Discrimination

Unfair treatment of employees or job applicants based on race, gender, age, religion, or other non-job-related factors.

Similar Productivity Characteristics

Refers to entities or products that share common features in terms of efficiency, output, or performance.

Employment Discrimination

Unfair or prejudicial treatment of employees or job applicants based on characteristics such as race, gender, or age.