When evaluating an acquisition, you should do which of the following:

Question

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When evaluating an acquisition, it is important to apply the discount rate that is relevant to the incremental cash flows, as this will provide an accurate measurement of the profitability of the acquisition. Ignoring market values of assets, timing of cash flows, and acquisition fees can lead to inaccurate valuations. Additionally, it is important to consider potential losses of management talent, as this could have a significant impact on the success of the acquisition.

When Evaluating an Acquisition, You Should Do Which of the Following