In Valuing a Target of a Merger or Acquisition

question 16

Multiple Choice

In valuing a target of a merger or acquisition:

• A)the market value of its outstanding shares of stock is a valid basis for valuing the target.
• B)the cash flow from all of the target's product lines and businesses must be estimated and analyzed.
• C)the average value of the target's stock value over the last year must be determined and analyzed.
• D)the peak cash flow that the target has generated in the past is a good indication of the value of the target.

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Definitions:

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Expressions

Facial gestures, vocal intonations, or phrases used to convey emotions, thoughts, or intentions.

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