If an MNC Is Considering a Merger or Acquisition Involving

question 15

Multiple Choice

If an MNC is considering a merger or acquisition involving a target in a high-tax country,the value of that target to the MNC:

• A)may be lower than the target's value in the country where it exists.
• B)will not be affected.
• C)may be higher than the target's value in the country where it exists.
• D)will not be affected unless the MNC finances the merger or acquisition in the country where the target exists.

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Definitions:

Slope

In mathematics, the measure of the steepness, incline, or grade of a straight line, calculated as the ratio of vertical change to horizontal change between two points on the line.

Regression Analysis

A set of statistical processes for estimating the relationships among variables.

Least Squares Line

A line that minimizes the sum of the squares of the vertical distances of the points from the line, used in linear regression analysis.

Predicted Amount

A rephrased term for predicted values, indicating the numerical estimates generated by a predictive model.