Question: 1.Assuming that the market is efficient, if an acquisition does not create value for the acquiring firm's shareholders, then: a.the EPS can change but the

1.Assuming that the market is efficient, if an acquisition does not create value for the acquiring firm's shareholders, then:

a.the EPS can change but the stock price of the acquiring firm should remain constant.

b.the P/E ratio should remain constant regardless of any changes in the EPS.

c.the EPS will most likely increase while the P/E ratio remains constant.

d.the stock price of the acquiring firm should increase because of the growth of the firm.

e.the EPS of the acquiring firm must be the same both before and after the acquisition.

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