Assume Firm a Acquires Firm B

Multiple Choice

Assume Firm A acquires Firm B.As a result,the EPS of Firm A increase by 10 percent.Given this increase,you know for certain that the

A) acquisition created synergy.
B) purchase price was below market value.
C) value of B to A exceeded the value of B as a stand-alone firm.
D) acquisition provided diversification benefits.
E) total earnings divided by the total shares increased.