In Determining the Purchase Price for an Acquisition Target,which One

question 10

Multiple Choice

In determining the purchase price for an acquisition target,which one of the following valuation methods does not require the addition of a purchase price premium?

• A) Discounted cash flow method
• B) Comparable companies' method
• C) Comparable industries' method
• D) Recent transactions' method
• E) A & B only

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Definitions:

Sherman Act

A foundational antitrust law in the United States passed in 1890 that prohibits monopolies and any unreasonable constraints of trade.

Market Competition

The rivalry among businesses to attract customers and gain market share through price, product quality, services, and innovation.

Unfairly Restricting

refers to practices or policies that unduly limit the freedoms or opportunities of individuals or entities, often in a manner that is deemed unjust or biased.

Anticompetitive Behavior

practices by businesses that reduce competition in the market, often scrutinized under antitrust laws.