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When a high P/E company pays a 40% premium to buy a low P/E company from a different industry, with the payment in stock. Which

image text in transcribed When a high P/E company pays a 40% premium to buy a low P/E company from a different industry, with the payment in stock. Which of the following is most likely to happen? Target stock price declines because the company will cease to exist. Acquirer stock price increases because acquier will have higher EPS. Target stock price increases because of the premium paid by the acquier. Target shareholder rejects the acquisition

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