If a Target Owns Significant Fixed Assets for Which There

question 3

Multiple Choice

If a target owns significant fixed assets for which there is an active secondary market:

• A)the assets will be difficult to dispose of when those assets are no longer needed in the firm that survives the merger or acquisition.
• B)the terminal value of the target will not be relevant because those assets will be used by the firm that survives the merger or acquisition.
• C)plenty of those assets are available,so the assets value will be reduced.
• D)precise estimates of the terminal value of the target can be obtained.

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