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    Corporate Finance Study Set 2
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    Exam 23: Options
  5. Question
    When Two Firms Merge, the Value of the Acquiring Firm
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When Two Firms Merge, the Value of the Acquiring Firm

Question 2

Question 2

Multiple Choice

When two firms merge, the value of the acquiring firm will change by the:


A) Ggain from the merger
B) NPV minus the cost of the merger
C) NPV of the merger
D) Cost of the merger

Correct Answer:

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