If the Shareholders of an Acquired Firm Capture All of the Merger's

question 73

Multiple Choice

If the shareholders of an acquired firm capture all of the merger's gain,then the:

• A) cost of the merger is zero.
• B) NPV of the merger is zero.
• C) EPS will increase.
• D) acquiring firm retains all merger benefits.

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Definitions:

Classical Conditioning

An acquisition of knowledge approach where two stimuli are regularly coupled; a behavior that at the outset is triggered by the second stimulus becomes, over time, elicited by the first stimulus alone.

Blocking

A learning phenomenon where an already established association to a stimulus inhibits the formation of an association to a new stimulus.

Classical Conditioning

An educational method where an association is made between a stimulus found in the environment and a stimulus that occurs naturally.

Strong Phobia

An intense, irrational fear of a specific object, scenario, or activity that leads to significant anxiety and avoidance behavior.