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Control Over a Firm Permits the Possibility of Changing the Future

Question 26

Multiple Choice

Control over a firm permits the possibility of changing the future cash flows. Which two of the following are possible results of achieving control on a target company?


A) A share may be less highly valued.
B) It could be valued on the basis of its discounted future cash flows.
C) It could be re- valued on the basis of previous cash flows.
D) A share may be more highly valued.

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