Which of the Following Is Incorrect? Merger Analysis Is

question 53

Multiple Choice

Which of the following is incorrect? Merger analysis is:

• A)a straightforward capital budgeting exercise.
• B)difficult because it's hard for the acquirer to get an accurate estimate of the target's cash flows.
• C)imprecise because of the variability of terminal value estimates.
• D)not always performed rationally judging by the price premiums paid for many acquisitions.