In a Merger or Acquisition,a Firm Should Be Acquired If

In a merger or acquisition,a firm should be acquired if it:

A) generates a positive net present value to the shareholders of the acquiring firm.
B) is a firm in the same line of business in which the acquirer has expertise.
C) is a firm in a totally different line of business which will diversify the firm.
D) pays a large dividend which will provide a cash pass through to the acquirer.
E) increases the firm's market share.

Correct Answer:

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