How should a successful acquisition be evaluated in the long-run?
A. The acquisition is successful if the acquirer is able to increase its earnings per share (EPS), relative to what it would have been without the acquisition.
B. The acquisition is successful if the acquirer is able to reduce its debt-to-total asset ratio, and hence risk, relative to what it would have been without the acquisition.
C. The acquisition is successful if the acquirer is able to diversify its asset base and reduce its overall risk.
D. The acquisition is successful if the market price of the acquirer's stock increases over what it would have been without the acquisition
Answer:D
How should a successful acquisition be evaluated in the long-run?
A. The acquisition is successful if the acquirer is able to increase its earnings per share (EPS), relative to what it would have been without the acquisition. B. The acquisition is successful if the acquirer is able to reduce its debt-to-total asset ratio, and hence risk, relative to what it would have been without the acquisition. C. The acquisition is successful if the acquirer is able to diversify its asset base and reduce its overall risk. D. The acquisition is successful if the market price of the acquirer's stock increases over what it would have been without the acquisition