CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

_____ mergers do not create any economic gains and involves two companies with different P/E ratios but similar earnings numbers.
A. Bootstrapping.
B. Poison put.
C. Shark repellent.
Explanation: Bootstrapping is a way of packaging the combined earnings from two companies so that the combined one has an increased EPS even though there is no real economic gain.

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