Which of the following is a correct statement?
A) EPS growth cannot occur as the result of an acquisition.
B) EPS growth cannot occur from an acquisition unless it creates no additional value.
C) Stockholders can achieve diversiﬁcation on their own.
D) Diversiﬁcation is usually beneﬁcial in a merger because it reduces systematic risk.
E) Diversiﬁcation, by itself, is one reason that value may be created in a merger.

Question

Quizplus · Accepted Answer

Stockholders can achieve diversification on their own by investing in a variety of assets, so they do not need a company to merge for diversification purposes.

Which of the Following Is a Correct Statement