If the PE paid is equal to the PE of the acquiring company, the effect on the earnings per share of the acquired company will be
A. positive.
B. neutral.
C. negative.
D. uncorrelated.
Answer:B
If the PE paid is equal to the PE of the acquiring company, the effect on the earnings per share of the acquired company will be
A. positive. B. neutral. C. negative. D. uncorrelated.