A Competent Merger Analysis Calculates the Maximum Per Share Price

question 14

Multiple Choice

A competent merger analysis calculates the maximum per share price that should be paid for an acquisition as:

• A)the pre-merger market price plus the per share value of synergies.
• B)the NPV of the incremental cash flows coming from the acquisition divided by the number of shares of the target's stock that are outstanding.
• C)the targets terminal value.
• D)the NPV of the target's terminal value divided by the number of share tendered.

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Definitions:

Heterosexuality

describes a sexual orientation characterized by a romantic or sexual attraction to individuals of the opposite sex.

Homosexuality

A sexual orientation characterized by a romantic or sexual attraction to individuals of one's own sex.

Gender Ideology

The set of societal norms and beliefs that dictate the expected behaviors, roles, and opportunities based on one's perceived sex or gender identity.

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A belief that certain phenomena or categories have an inherent and unchangeable essence or nature.