Which of the Following Is Incorrect? Merger Analysis Is

Multiple Choice

Which of the following is incorrect? Merger analysis is:

A) a straightforward capital budgeting exercise.
B) difficult because it's hard for the acquirer to get an accurate estimate of the target's cash flows.
C) imprecise because of the variability of terminal value estimates.
D) not always performed rationally judging by the price premiums paid for many acquisitions.