The Value of a Target Firm to the Acquiring Firm

Multiple Choice

The value of a target firm to the acquiring firm is equal to the:

A) value of the target firm as a separate entity plus the incremental value derived from the acquisition.
B) purchase cost of the target firm.
C) value of the merged firm minus the value of the target firm as a separate entity.
D) purchase cost plus the incremental value derived from the acquisition.
E) incremental value derived from the acquisition.