If an acquisition does not create value, then the: A) price-earnings ratio should remain constant regardless...
If an acquisition does not create value, then the:
A) price-earnings ratio should remain constant regardless of any changes in the earnings per share.
B) price per share of the acquiring company should increase because of the growth of the firm.
C) earnings per share will most likely increase while the price-earnings ratio remains constant.
D) earnings per share of the acquiring firm must be the same both before and after the acquisition.
E) earnings per share can change but the stock price of the acquiring company should remain constant.
Homework Answers
The answer is:-
E) earnings per share can change but the stock price of the acquiring company should remain constant.
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