A Takeover Creates Value for the Acquirer as Long as Which

Multiple Choice

A takeover creates value for the acquirer as long as which of the following statements is true:

A) The NPV of the standalone value of the target firm plus synergy less the offer price is greater than or equal to zero
B) The NPV of the standalone value of the target firm less the offer price is greater than or equal to zero
C) The NPV of the standalone value of the target firm plus synergy less the sum of the offer price and transaction-related expenses is greater than or equal to zero
D) The NPV of the offer price less the standalone value of the target firm is less than or equal to zero
E) None of the above