Asked by

Jillian Wilder
on Nov 07, 2024

verifed

Verified

Which of the following is a correct statement?

A) EPS growth cannot occur as the result of an acquisition.
B) EPS growth cannot occur from an acquisition unless it creates no additional value.
C) Stockholders can achieve diversification on their own.
D) Diversification is usually beneficial in a merger because it reduces systematic risk.
E) Diversification, by itself, is one reason that value may be created in a merger.

Diversification

The strategy of spreading investments across various asset classes or sectors to reduce risk.

Merger

A strategic business action where two entities consolidate their assets, operations, and management with the aim of fostering growth or competitive advantage.

  • Assess the importance of diversification in mergers and acquisitions.
verifed

Verified Answer

DH
Dallas HalliburtonNov 13, 2024
Final Answer:
Get Full Answer