According to the free-cash-flow theory of takeovers, postmerger gains in market value represent:
A) an illogical assessment of earnings prospects.
B) the remaining costs of the merger.
C) the belief that free cash flow that will no longer be misused.
D) losses experienced by arbitrageurs and other speculators.
Correct Answer:
Verified
Q81: Realizing the benefits of a merger is
Q82: When two firms merge,the value of the
Q84: Why might shareholders of an acquiring firm
Q86: Which one of the following is not
Q90: What type of financing is typically instrumental
Q92: Which one of the following is correct
Q96: Shares of a corporation can,under certain circumstances,be
Q97: Firms A and B are each currently
Q98: Splitting one firm into four separate firms
Q99: Firm B's 1 million shares of stock
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents