Consider the following equation:

Question

Consider the following equation: 
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The term T in this equation refers to

Quizplus · Accepted Answer

The term T in this equation refers to the premerger (standalone) value of the target. This equation represents the calculation of the target's value in a merger situation, where the acquirer is offering to pay a certain amount (represented by the first line) for the target company. The term T represents the premerger value of the target, which is added to the synergies created by the merger (represented by the second line) to arrive at the total value of the target post-merger (represented by the third line).

Consider the Following Equation