The "Bootstrap Game" is played somewhat in defiance of traditional merger logic in that it:
A) provides immediate benefit through improved management.
B) does not offer a positive NPV from the merger.
C) stays in effect only until EPS are increased.
D) does not require the approval of a majority of shareholders.

Question

Quizplus · Accepted Answer

The "Bootstrap Game" refers to a merger strategy that may not provide a positive Net Present Value (NPV) but can temporarily increase Earnings Per Share (EPS) through financial engineering rather than creating real value.

The "Bootstrap Game" Is Played Somewhat in Defiance of Traditional