One Indication That Investors Expect No Synergy from a Merger

question 23

Multiple Choice

One indication that investors expect no synergy from a merger would be that the:

• A) total market value of the merged firms does not change.
• B) P/E ratio of the merged firms' changes.
• C) acquiring firm financed the merger with cash.
• D) merged firms are from different industries.

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Definitions:

\(k + 8\)

An algebraic expression representing the sum of a variable, \(k\), and the number 8.

\(d = \frac { 3 } { 7 }\)

Represents a specific value of the variable d, which is equal to the fraction three-sevenths.

\(d = 4\)

An equation representing that the value of the variable \(d\) is equal to 4.