Which of the following is incorrect? Merger analysis is:
A)a straightforward capital budgeting exercise.
B)difficult because it's hard for the acquirer to get an accurate estimate of the target's cash flows.
C)imprecise because of the variability of terminal value estimates.
D)not always performed rationally judging by the price premiums paid for many acquisitions.

Question

Quizplus · Accepted Answer

Merger analysis is not a straightforward capital budgeting exercise, as it involves factors such as market competition, potential synergies, and regulatory hurdles that are not typically considered in a traditional capital budgeting exercise.

Which of the Following Is Incorrect? Merger Analysis Is