If the P/E Paid for a Target Company Is Less

question 78

Multiple Choice

If the P/E paid for a target company is less than the P/E of the acquiring company, the effect on the earnings per share of the acquiring company will be ________.

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

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Definitions:

Intrinsic Religiosity

A person’s inner religious life or personal relationship to the divine.

Extrinsic Religiosity

A person’s public display of commitment to a religious faith.

Unchurched Spirituality

Describes a personal spiritual belief and practice outside of organized religion or traditional church settings.

Religiosity

The regular practice of religious beliefs, often measured in terms of frequency of attendance at worship services and the importance of religious beliefs to an individual.