When the Ratio of Exchange in a Merger Is Equal

question 149

Multiple Choice

When the ratio of exchange in a merger is equal to one and both the acquiring and the target companies have the same premerger earnings per share, the merged firm's earnings per share will initially ________.

• A) decline
• B) remain constant
• C) increase
• D) drop to zero

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Definitions:

Speakers

Individuals who give talks or presentations, often experts in a particular field or subject matter.

Symbolic Interactionists

Sociologists who focus on the study of how individuals interact and communicate within society, emphasizing the role of symbols and language.

Rational Exchange Theorists

Scholars who analyze social interactions in terms of costs and benefits, suggesting individuals aim to maximize rewards and minimize costs.

Values

Ideas about what is right and wrong.