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 term S in this equation refers to the value of the synergies created by the merger. The equation represents an approach to estimating the value of a merger by comparing the sum of the standalone values of the target and the acquirer to the combined value of the merged entities, which includes the value of any synergies created by the merger (represented by S).

Consider the Following Equation: < the Term