When Two Firms Merge,the Value of the Acquiring Firm Will

question 85

Multiple Choice

When two firms merge,the value of the acquiring firm will change by the:

• A) gain from the merger.
• B) NPV minus the cost of the merger.
• C) NPV of the merger.
• D) cost of the merger.

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Definitions:

Scientific Method

A systematic approach to research in which a problem is identified, relevant data are gathered, a hypothesis is formulated from these data, and the hypothesis is empirically tested.

Sexual History

An account of an individual's past sexual activities, preferences, and significant experiences.

Divorced

The legal dissolution of a marriage by a court or other competent body, resulting in the termination of a marital union.

Descriptive Research Method

A systematic approach to research that aims to describe the characteristics of a phenomenon or population without manipulating variables.