The Cost of a Merger Equals The

question 3

Multiple Choice

The cost of a merger equals the:

• A) cash paid for the target firm.
• B) increase in total earnings minus the price paid.
• C) premium paid over the target's value as a separate entity.
• D) sum of cash and stock paid for the target firm.

---

Definitions:

Duty to Society

The responsibility of individuals and organizations to act in the best interests of the community at large, contributing positively to the welfare of others.

Social Contract

A theoretical agreement within a society or between the governed and the government, defining and limiting the rights and duties of each.

Relativist

An individual or doctrine emphasizing the belief that points of ethical and moral significance are relative to individual cultures or personal perspectives.

Ethical Perspective

A viewpoint or angle from which ethical concerns and principles are analyzed and considered.