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  2. Topic
    Business
  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 18: Mergers, Lbos, Divestitures, and Business Failure
  5. Question
    If the P/E Paid Is Greater Than the P/E of the Acquiring
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If the P/E Paid Is Greater Than the P/E of the Acquiring

Question 2

Question 2

Multiple Choice

If the P/E paid is greater than the P/E of the acquiring company, the effect on the earnings per share of the acquired company will be


A) positive.
B) neutral.
C) negative.
D) uncorrelated.

Correct Answer:

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