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    Foundations of Financial Management Study Set 2
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    Exam 20: External Growth Through Mergers
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    Following a Merger, the Change in the Risk Profile of the Merged
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Following a Merger, the Change in the Risk Profile of the Merged

Question 46

Question 46

True/False

Following a merger, the change in the risk profile of the merged companies may influence the P/E ratio as much as the change in the overall growth rate.

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