One Indication That Investors Expect No Synergy from a Merger

question 61

Multiple Choice

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

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

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Definitions:

Pertussis

A highly contagious respiratory disease also known as whooping cough, caused by the bacterium Bordetella pertussis.

Sensitivity

Abnormal susceptibility to a substance.

Abnormal Susceptibility

An increased likelihood of developing certain conditions or diseases compared to the general population.

Parenteral Route

Administration of substances, such as medication or nutrients, bypassing the digestive tract, typically through injections.