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If an acquisition is done through a share exchange whereby the acquiring company shares itself for the shares in the target company and the effective

If an acquisition is done through a share exchange whereby the acquiring company shares itself for the shares in the target company and the effective PE paid acquiring company is less than their own PE, EPS after the acquisition would be expected to

A. increase

B. decrease

A major motive for an auto manufacturer to acquire a smart car technology company another would be to

A. diversify

B. obtain synergies providing cost savings.

C. acquire growth through new products

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