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In Their Study of the Determinants of the Price-Book Ratio

Question 42

Multiple Choice

In their study of the determinants of the price-book ratio in bank mergers, Beatty, Santomero, and Smirlock found:


A) the merger premium was higher for more profitable banks
B) the merger premium was positively related to the ratio of U. S. Treasury securities to total assets
C) the merger premium was negatively related to the ratio of loans to total assets
D) a and c

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