All else equal,if two competing firms in industry X are valuing the same plant in industry Y for a potential acquisition,the firm with the more volatile stock should arrive at a lower valuation for the plant.

Question

Quizplus · Accepted Answer

The volatility of a firm's stock does not directly affect the valuation of a plant they are looking to acquire. Valuation is typically based on the plant's financial performance, future cash flow projections, and synergies with the acquiring firm, not the acquiring firm's stock volatility.

All Else Equal,if Two Competing Firms in Industry X Are