One Indication That Investors Expect No Synergy from a Merger

question 23

Multiple Choice

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

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

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Definitions:

Analyze Information

The process of examining data methodically to understand its meaning and make informed decisions.

Information Technology

The employment of computers, storage systems, networking, and various physical devices, infrastructure, and procedures for the generation, processing, storing, securing, and sharing of all types of electronic data.

Communicate

The act of exchanging information, ideas, or feelings between individuals or groups, using various modes such as writing, speaking, or through digital platforms.

Coordination

The act of organizing and aligning different elements or activities so that they work together effectively towards a common goal.