According to the Free-Cash-Flow Theory of Takeovers,postmerger Gains in Market

question 95

Multiple Choice

According to the free-cash-flow theory of takeovers,postmerger gains in market value represent:

• A) an illogical assessment of earnings prospects.
• B) the remaining costs of the merger.
• C) the present value of free cash flow that will no longer be misused.
• D) losses experienced by arbitrageurs and other speculators.

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Definitions:

Perceive

To become aware of, know, or identify by means of the senses.

Brightness

A perceptual attribute of light sources and colors that enables an observer to judge their intensity or illumination.

Colour Vision

The ability of the eye and brain to distinguish objects based on the wavelengths (or frequencies) of the light they reflect or emit.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and visual acuity under bright light conditions.