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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 18: Mergers, Lbos, Divestitures, and Business Failure
  5. Question
    If the P/E Paid for a Target Company Is Greater
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If the P/E Paid for a Target Company Is Greater

Question 178

Question 178

Multiple Choice

If the P/E paid for a target company is greater than the P/E of the acquiring company, the effect on the earnings per share of the acquiring company will be ________.


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

Correct Answer:

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