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Merger
?
In a merger or acquisition, a firm should be acquired if it:
generates a positive net present value to the shareholders of an acquiring firm.
is a firm in the same line of business, in which the acquirer has expertise.
is a firm in a totally different line of business which will diversity the firm.
pays a large dividend which will provide cash pass through to the acquiror.
Show Result
Correct
- Your answer is correct.
Wrong
- Your answer is wrong.
Detailed Answer
Correct answer: (A)
generates a positive net present value to the shareholders of an acquiring firm.
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