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    Fundamentals of Corporate Finance Study Set 7
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    Exam 21: Mergers,Acquisitions,and Corporate Control
  5. Question
    Mergers That Attempt to Bootstrap Earnings May Obtain Increased Current
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Mergers That Attempt to Bootstrap Earnings May Obtain Increased Current

Question 1

Question 1

Multiple Choice

Mergers that attempt to bootstrap earnings may obtain increased current earnings per share at the expense of:


A) a higher price-earnings ratio.
B) higher total combined market value.
C) reduced future growth prospects.
D) increased free cash flow.

Correct Answer:

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