Consider the following equation:

Question

Consider the following equation:  <   The term T in this equation refers to ________.
A) the premerger, or standalone, value of the acquirer 
B) the value of the synergies created by the merger 
C) the premerger (standalone) value of the target 
D) new shares to pay for the target

Quizplus · Accepted Answer

The equation is comparing the value of the acquirer before and after the merger with the standalone value of the target. Therefore, T refers to the premerger (standalone) value of the target.

Consider the Following Equation: < the Term