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

question 160

Multiple Choice

If the P/E paid is less 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) uncorrelated.

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Definitions:

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Central Nervous System, comprising the brain and spinal cord, responsible for integrating sensory information and coordinating bodily functions.

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