Consider the Following Equation: the Term X in This Equation

question 18

Multiple Choice

Consider the following equation: The term x in this equation refers to

• A)the pre-merger, or standalone, value of the acquirer.
• B)new shares to pay for the target.
• C)the pre-merger (standalone)value of the target.
• D)the value of the synergies created by the merger.

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Definitions:

Deposits

Sums of money placed into an account in a bank or other financial institution, typically earning interest and used for saving or as collateral.

Fully Depreciated

An asset's state when it has amortized or written off its entire initial cost over its useful life, leaving it with a book value of zero or minimal value.

Asset

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Life Estimate

A projection or approximation of the duration or longevity of an entity, product, or component.