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:

Rights And Autonomy

Rights and autonomy pertain to the principles of individual freedom and the entitlement to live one's life according to one's own choices and values, without coercion.

Kohlberg

Lawrence Kohlberg was a psychologist recognized for his theory on the stages of moral development, which posits that individuals progress through different levels of moral reasoning as they age.

Moral Development

The process by which individuals learn and apply concepts of right and wrong, often influenced by cultural, societal, and personal factors.

Universal

A characteristic or principle that is applicable everywhere or in all cases; universally accepted.