The Hubris Motive for M&As Refers to Which of the Following

question 90

Multiple Choice

The hubris motive for M&As refers to which of the following?

• A) Explains why mergers may happen even if the current market value of the target firm reflects its true economic value
• B) The ratio of the market value of the acquiring firm's stock exceeds the replacement cost of its assets
• C) Agency problems
• D) Market power
• E) The Q ratio

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Definitions:

Germany

A country in Central Europe known for its history, culture, economic power, and significant contributions to art, science, and philosophy.

Lusitania

A British ocean liner famously sunk by a German U-boat in 1915, an event that significantly swayed public opinion in several countries against Germany during World War I.

United States

A federal republic in North America composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Passenger Ship

A ship designed to carry people, as opposed to cargo, over water. These ships range from small ferries to large ocean liners.