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  2. Topic
    Business
  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 18: Mergers, Lbos, Divestitures, and Business Failure
  5. Question
    If the P/E Paid Is Greater Than the P/E of the Acquiring
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If the P/E Paid Is Greater Than the P/E of the Acquiring

Question 63

Question 63

True/False

If the P/E paid is greater than the P/E of the acquiring company, on a postmerger basis the target firm's EPS increases and the acquiring firm's EPS decreases.

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