Solved

An Increase in Earnings Per Share After a Merger May

Question 65

Multiple Choice

An increase in earnings per share after a merger may not indicate increased value if the:


A) number of shares has increased.
B) price of the acquirer's stock increases.
C) price-earnings ratios were different in the premerger firms.
D) firm's additional earnings are spent on legal expenses of the merger.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions