Which of the Following Would Not Enhance the Value of a Target

question 54

Multiple Choice

Which of the following would not enhance the value of a target from the acquirer's perspective?

• A) Expected sales of the target have increased.
• B) The subsidiary's currency is expected to strengthen after the acquisition.
• C) The required rate of return from investing in the target has increased.
• D) All of the above would enhance the value of the target.

---

Definitions:

Measurement Principle

An accounting principle that determines the specific basis on which economic events are recognized and quantified.

Monetary Unit Assumption

An accounting principle that assumes transactions and events can be expressed in stable units of money, facilitating their comparison and measurement.

Property Tax

Property tax is a levy on property that the owner is required to pay to the government in which the property is situated.

Selling Price

The amount for which a product or service is sold to customers, determining the revenue generated from sales.