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  3. Study Set
    Principles of Corporate Finance Study Set 4
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    Exam 18: Mergers and Acquisitions, and Business Failure
  5. Question
    If the P/E Paid Is Equal to the P/E of the Acquiring
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If the P/E Paid Is Equal to the P/E of the Acquiring

Question 94

Question 94

Multiple Choice

If the P/E paid is equal to the P/E of the acquiring company, the effect on the earnings per share of the acquired company will be


A) negative.
B) positive.
C) neutral.
D) uncorrelated.

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