1- When a firm with a high P/E ratio buys a firm with a low P/E ratio using a stock swap, the acquisition tends to be:

A) Accretive because the acquirer has low earnings prior to the merger

B) Dilutive because the target has high earnings prior to the merger

C) Accretive because the acquirer has to issue relatively fewer new shares to buy the outstanding equity of the target firm

D) Dilutive the acquirer has to issue relatively more new shares to buy the outstanding equity of the target firm

2 - Which of the following is true?

a) A merger with negative synergies will always be dilutive

B) A merger with positive synergies will always be accretive

C) Whether a merger is accretive or dilutive depends on how much cash versus stock is used to pay for the target

D) A merger is considered accretive if the acquirers stock price goes up after the merger.

3 - On July 12, Vtech Inc. declared a $1.50-per-share quarterly dividend payable on September 9th to stockholders of record on August 12, Wednesday. What is the latest date by which you could purchase the stock and still get the recently declared dividend?

A) August 10

B) August 7

C) August 9

D) August 8