From the bidder's perspective,the takeover is a ________ only if the premium it pays ________ the synergies created.
A) positive-NPV project; exceeds
B) positive-NPV project; does not exceed
C) zero-NPV project; does not exceed
D) zero-NPV project; exceeds

Question

Quizplus · Accepted Answer

A takeover is considered a positive-NPV (Net Present Value) project for the bidder if the premium paid for the takeover does not exceed the value of the synergies created by the merger or acquisition. This means the investment is expected to generate a return above the cost, making it a financially beneficial decision.

From the Bidder's Perspective,the Takeover Is a ________ Only If