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:

Parasites

Organisms that live on or within another organism (the host), from which they obtain nutrients at the host's expense.

Relative Frequency

The proportion of times a particular value occurs in relation to the total number of observations.

Distribution

The arrangement, frequency, or spread of something across a particular area or among a specified group.

Average

A statistic specifying the sum of the values that the items in a class have on a quantitative variable P, divided by the number of items.