In the Event That Active Corp

question 58

Multiple Choice

In the event that Active Corp.,which has a low P/E ratio,acquires Basic Corp.,which has a higher P/E ratio,we could be assured one of the following would occur.

• A) Active Corp.will have an immediate increase in EPS.
• B) Active Corp.will have an immediate decrease in EPS.
• C) Active Corp.will have an immediate increase in the growth rate of EPS.
• D) Active Corp.will have an immediate decrease in P/E.

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Definitions:

Independent Variable

A variable in an experiment that is manipulated to observe its effect on the dependent variable.

Chocolate

A sweet, typically brown food preparation of roasted and ground cacao seeds, often sweetened and consumed as candy or dessert.

Independent Variable

The variable that is manipulated by the researcher to observe its effect on the dependent variable.

Hot Milk

A warm beverage made by heating milk, often consumed for its comforting effects or as a sleep aid.