The value of a target firm to the acquiring firm is equal to the:
A) value of the target firm as a separate entity plus the synergy derived from the acquisition.
B) purchase cost of the target firm.
C) value of the merged firm minus the value of the target firm as a separate entity.
D) purchase cost plus the incremental value derived from the acquisition.
E) incremental value derived from the acquisition.
Correct Answer:
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