Consider the following equation:

Question

Consider the following equation:  <   The term S in this equation refers to ________.
A)the premerger (standalone)value of the target 
B)the premerger, or standalone, value of the acquirer 
C)the value of the synergies created by the merger 
D)new shares to pay for the target

Quizplus · Accepted Answer

The equation represents the calculation of the value of synergies created by the merger. The term "S" refers to the value of the synergies, which is the increase in the combined value of the companies due to the merger. Therefore, the correct answer is C. The other options listed are not relevant to this equation.

Consider the Following Equation: < the Term