If an Acquisition Does Not Create Value, Then The

question 38

Multiple Choice

If an acquisition does not create value, then the:

• A)earnings per share of the acquiring firm must be the same both before and after the acquisition.
• B)earnings per share can change but the stock price of the acquiring firm should remain constant.
• C)price per share of the acquiring firm should increase because of the growth of the firm.
• D)earnings per share will most likely increase while the price-earnings ratio remains constant.
• E)price-earnings ratio should remain constant regardless of any changes in the earnings per share.

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Definitions:

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The choice to refuse or not partake in a sweet course following a meal, often for health, dietary, or personal reasons.

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A musical instrument played by pressing keys, causing hammers to strike strings, thus producing a wide range of tones.

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An instructional process by which the magnitude of a behavior is influenced by giving rewards or imposing punishments.

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