Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

23. Which one of the following statements is correct? a. An increase in the earnings per share as a result of an acquisition wil increase

image text in transcribed
23. Which one of the following statements is correct? a. An increase in the earnings per share as a result of an acquisition wil increase the price per share of the acquiring firm. of an acquisition which fails to create value. c. If firm A acquires firm B then the number of shares in AB wl equal the number of shares of A plus the number of shares of B d. If no value is created when firm A acquires firm B, then the total value of AB will equal the value of A plus the value of B e. Diversification is one of the greatest benefits derived from an acquisition. 24. Which one of the following statements is correct? a. A spin- off frequently follows an equity carve-out. b. A split-up frequently follows a spin-off. c. An equity carve-out is a specific type of acquisition. d. A spin-off involves an initial public offering. e. A divestiture means that the original firm ceases to exist

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Grow Your Small Business Profits How I Find A 100K In Any Business In 45 Minutes

Authors: Sharon Coleman

1st Edition

B0C9S9CCZJ, 979-8850917258

More Books

Students also viewed these Finance questions