The Value of a Target Firm to the Acquiring Firm

Multiple Choice

The value of a target firm to the acquiring firm is equal to:

A) the value of the target firm as a separate entity plus the incremental value derived from the acquisition.
B) the purchase cost of the target firm.
C) the value of the merged firm minus the value of the target firm as a separate entity.
D) the purchase cost plus the incremental value derived from the acquisition.
E) the incremental value derived from the acquisition.