If Cross-Border Acquisitions Generate Synergistic Gains

question 45

Multiple Choice

If cross-border acquisitions generate synergistic gains,

• A)then both the acquiring and target shareholders gain wealth at the same time.
• B)then one can argue that cross-border acquisitions are mutually beneficial and thus should not be thwarted both from a national and global perspective.
• C)then the value of the combined firm is greater than the stand-alone valuations of the individual (acquiring and target) firms.
• D)all of the above.

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Definitions:

Private Saving

The portion of an individual's or household's income that is not spent on consumption or taxes and is instead set aside for future use.

National Saving

The total amount of savings generated within a country, which equals the sum of private and public savings.

Closed Economy

An economic system that does not interact with other economies in terms of trade, investment, or migration, relying entirely on its own resources.

Certificate of Indebtedness

A type of financial instrument indicating the holder is owed a debt by the issuer, typically with terms specifying the repayment of the principal and interest.