An MNC that plans to acquire a target would prefer to make a bid at a time when the local stock market prices are generally ____. Assume that economic conditions are held constant when completing this statement.

Question

Quizplus · Accepted Answer

The MNC would prefer to make a bid when local stock market prices are generally low as it would mean that the target's stock price is undervalued, making it a more attractive investment opportunity. This would also make the acquisition cost lower for the MNC, providing an opportunity for potential long-term gains.

An MNC That Plans to Acquire a Target Would Prefer