Consider the following equation:

Question

Consider the following equation:  <   The term S in this equation refers to:
A)the premerger (standalone)value of the target. 
B)the premerger,or standalone,value of the acquirer. 
C)the value of the synergies created by the merger. 
D)new shares to pay for the target.

Quizplus · Accepted Answer

The term S in this equation refers to the value of the synergies created by the merger. The inequality suggests that the combined value of the acquirer and target after the merger will be greater than the sum of their individual premerger values, which indicates the presence of synergies. Therefore, the term S refers to the value of these synergies.

Consider the Following Equation: < the Term