Which of the following statements is FALSE?
A)Diversification benefits are by far the most common justification that bidders give for the premium they pay for a target.
B)Chief among the costs associated with size is that larger firms are more difficult to manage.
C)An acquirer might be able to add economic value, as a result of an acquisition, that an individual investor cannot add.
D)For most investors, an investment in the share market is a zero-NPV investment.

Question

Quizplus · Accepted Answer

Diversification benefits are not typically the primary justification for the premium paid in acquisitions; synergies and strategic benefits are more common reasons.

Which of the Following Statements Is FALSE