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In computing the share price for a M&A target, which of the following statements is not true ? Group of answer choices Financial risk is
In computing the share price for a M&A target, which of the following statements is not true?
Group of answer choices
Financial risk is incorporated in the cost of equity in the form of a levered beta.
Interest is implicitly recognized because we are buying the equity.
The acquiring firms tax rate is used to compute the cashflows.
Next years dividend is used to compute the residual value.
If the computed share price is greater than the current price, an offer should be made.
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