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    Financial Management Theory and Practice Study Set 4
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    Exam 22: Mergers and Corporate Control
  5. Question
    Discounted Cash Flow Methods Are Not Appropriate for Evaluating Mergers
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Discounted Cash Flow Methods Are Not Appropriate for Evaluating Mergers

Question 37

Question 37

True/False

Discounted cash flow methods are not appropriate for evaluating mergers because the cash flows are uncertain and the discount rate can only be determined after the merger is consummated.

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