When the ratio of exchange in a merger is equal to one and both the acquiring and the target companies have the same premerger earnings per share, both the acquiring and the target companies have the same
A. debt ratio.
B. book value per share.
C. return on equity.
D. PE ratio.
Answer:D
When the ratio of exchange in a merger is equal to one and both the acquiring and the target companies have the same premerger earnings per share, both the acquiring and the target companies have the same
A. debt ratio. B. book value per share. C. return on equity. D. PE ratio.