For the bidder to enjoy an increase in EPS following a series of acquisitions, and in effect, play the P/E game, the following must be true:

Question

Quizplus · Accepted Answer

For the bidder to enjoy an increase in EPS, the post-deal P/E ratio must not decline, as a declining P/E ratio would indicate that the market is valuing the company less favorably, potentially negating any EPS gains from acquisitions.

For the Bidder to Enjoy an Increase in EPS Following