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

question 63

True/False

If the P/E paid is greater than the P/E of the acquiring company, on a postmerger basis the target firm's EPS increases and the acquiring firm's EPS decreases.

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Definitions:

HRP Model

Human Resource Planning Model; a strategic process used by organizations to align their human resource needs with their business goals.

Internal Fit

Refers to the alignment between an organization's human resources strategies, policies, and practices with its overall business strategy to create cohesiveness and enhance performance.

HR Practices

Activities and policies implemented by the human resources department to manage and support an organization's workforce, including hiring, training, performance management, and benefits administration.

Labour Shortage

A situation where there are insufficient qualified candidates available in the job market to fulfill the employment needs of employers.