The long-run effect on the earnings per share of the merged firm depends largely on
A. the pre-merger PE ratio.
B. the ratio of exchange.
C. the synergy of the merged firm.
D. the tax considerations.
Answer:C
The long-run effect on the earnings per share of the merged firm depends largely on
A. the pre-merger PE ratio. B. the ratio of exchange. C. the synergy of the merged firm. D. the tax considerations.