An MNC that plans to acquire a target would prefer to make a bid at a time when the local stock market prices are generally ____. Assume that economic conditions are held constant when completing this statement.
A)low
B)high
C)volatile
D)none of the above

Question

Quizplus · Accepted Answer

An MNC would prefer to make a bid at a time when local stock market prices are generally low. This would make the target company's stocks more affordable, reducing the overall cost of acquiring the firm. In addition, lower stock prices may indicate that the target company is undervalued, providing the MNC with a greater potential for return on investment in the long term.

An MNC That Plans to Acquire a Target Would Prefer