20. If an acquisition does not create value and the investors in the market have...
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Accounting
20. If an acquisition does not create value and the investors in the market have figured this out, then the: A) Earnings per share (EPS) of the acquiring firm must be the same both before and after the acquisition. B) The synergy of the acquisition can be negative because of the value transfer from stockholders to bondholders. C) EPS of the new firm can be greater than the previous EPS of the acquiring firm. D) Price of the acquiring firm must increase because of the growth of the firm. E) The stock price of the acquiring firm should increase if the acquisition diversifies away some of the firms unsystematic risk.
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