Which of the following would not enhance the value of a target from the acquirer's perspective?

Question

Quizplus · Accepted Answer

If the required rate of return from investing in the target has increased, it means that the acquisition would be less attractive to the acquirer as it would result in a lower return on investment. Therefore, it would not enhance the value of the target from the acquirer's perspective. On the other hand, options A and B would enhance the value of the target as these factors would increase the expected cash flows and reduce the risks associated with the acquisition. Therefore, the correct answer is C.

Which of the Following Would Not Enhance the Value of a Target