Which of the following would probably not cause the stock price of a foreign target to decrease?
A) Its expected cash flows decline.
B) General stock market conditions in the foreign country are deteriorating.
C) Investors anticipate that the target will be acquired.
D) All of the above will cause the target's stock price to decrease.

Question

Quizplus · Accepted Answer

If investors anticipate that the target will be acquired, it is likely that the stock price of the foreign target will increase or at least remain stable. The other options, such as declining cash flows and deteriorating stock market conditions, are more likely to cause the stock price to decrease.

Which of the Following Would Probably Not Cause the Stock