If the P/E Paid Is Equal to the P/E of the Acquiring

question 85

Multiple Choice

If the P/E paid is equal to 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:

Tactical Plans

Short-term actions designed to achieve specific objectives, often as part of a larger strategic plan.

Strategic Plans

Long-term, comprehensive blueprints for how an organization will achieve its goals and meet the expectations of its stakeholders.

Work Methods

The strategies, techniques, or processes employed by individuals or groups to carry out their tasks, often optimized for efficiency, quality, or safety.

Production Plans

Detailed outlines that specify the activities, resources, timelines, and costs involved in producing a product or providing a service.