If the P/E Paid Is Greater Than the P/E of the Acquiring

question 116

Multiple Choice

If the P/E paid is greater than the P/E of the acquiring company, the effect on the earnings per share of the acquired company will be ________.

• A) positive
• B) neutral
• C) negative
• D) unrelated

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Definitions:

Effective Marketing Strategy

A comprehensive plan crafted to communicate a product's or service's value to the target audience, aiming to achieve marketing objectives and enhance market position.

Competitive Advantages

Refers to conditions that allow a company or country to produce goods or services at a lower price or in a more desirable fashion for customers than its competitors.

Cost Leadership

A strategy where a company aims to become the lowest cost producer in the industry to gain a competitive advantage.

Singularity

A hypothetical future point at which technological growth becomes uncontrollable and irreversible, resulting in unforeseeable changes to human civilization.