menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  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 for a Target Company Is Equal
Solved

If the P/E Paid for a Target Company Is Equal

Question 105

Question 105

Multiple Choice

If the P/E paid for a target company is equal to 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:

verifed

Verified

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

Related Questions

Q76: A congeneric merger is a merger in

Q100: A form of divestiture in which an

Q104: The creation of a high-debt, private corporation

Q106: Hayley Medical, Inc. is evaluating the acquisition

Q110: It is not unusual for acquirers in

Q121: A financial merger is a merger transaction

Q127: An attractive candidate for acquisition through leveraged

Q131: A horizontal merger is a merger in

Q142: The overriding goal for merging is the

Q164: Under recapitalization, debts are generally exchanged for

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines