Why do you think shareholders from target companies enjoy an average gain when acquired, while acquiring shareholders

Question:

Why do you think shareholders from target companies enjoy an average gain when acquired, while acquiring shareholders on average often do not gain anything?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0321818171

2nd Canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

See More Books

Question Posted: Jan 08, 2019 10:55 AM

See More Questions

1. Why do you think so many American citizens and lawmakers reacted negatively to Googles decision in 2006? 2. Does the fact that Google is an Internet company change societal expectations of it...
Why do you think some large, well-known companies such as Cisco Systems, Intel, and Microsoft prefer to trade on the Nasdaq OMX markets rather than on an organized securities exchange such as the...
Why do you think bribery investigations always seem to center on companies involved in selling military goods or oil production services as opposed to, say, companies selling leather goods, luxury...
According to a study performed by the NCAA, the average rate of injuries occurring in collegiate womens soccer is 8.6 per 1000 participants (www.fastsports.com/tips/tip12/). a. Using the Poisson...
Following the preparation of the bank reconciliation for Lolitta Services, a correcting journal entry was needed. A cheque issued for the correct amount of $960 for a payment on account was recorded...
What is the difference between fixed order interval/order up to level model and the coordinated periodic review model? When would each be preferred?
How do organizations decide whom to send RFPs or RFQs? LO.1
Johnson Filtration, Inc., provides maintenance service for water filtration systems throughout southern Florida. Customers contact Johnson with requests for maintenance service on their water...
Current Attempt in Progress The trial balances before and after adjustment for Oriole Company at October 31, 2021, which is the end of its fiscal year, are as follows: Cash Accounts Receivable...
W&S Partners began the planning phase of the Cloud 9 audit. As part of the risk assessment phase for the new audit, the audit team needs to gain an understanding of Cloud 9's structure and its...
What are the two primary mechanisms under which ownership and control of a public corporation can change?
What are merger waves?
In a balanced three-phase wye-wye system the total power loss in the lines is 400W. VAN = 105.28 <31.56o V rms and the power factor of the load is 0.77 lagging. If the line impedance is 2 + j1 ,...
What are the key differences between OLTP (Online Transaction Processing) and OLAP (Online Analytical Processing) databases, and how do they cater to distinct business requirements ?
__________ refers to speaking up with good intentions about work-related issues, rather than remaining silent. Multiple Choice Neutralizing Micromanagement Filtering Voice Collaborating
Consider Michael Porter's Five Forces Model and use the enclosed form to evaluate the OCSIP industry in Jamaica.
Petesy Corporation is preparing its Master Budget for 2019. Budget information is as follows: Sales Production Cost Operating Expenses 2019 1 st Quarter P280,000 P192,000 P64,000 2 nd Quarter 320,000...
Design a DFA to recognize any valid fractional numbers of the form . where is at most 3 digits and is any number of digits. However, fractional part can never have more digits than the wholepart. If...
Imagine that one of your employees complained that a coworker was harassing him or her. Also, imagine that you suspect the motives of the person who is complaining to you. How would you handle the...
Revol Industries manufactures plastic bottles for the food industry. On average, Revol pays $76 per ton for its plastics. Revol's waste-disposal company has increased its waste-disposal charge to $57...
How did accounting fraud contribute to the collapse of Enron?
How are the statement of financial position and the income statement related?
Use Google Finance (www.google.com/finance) to find the statement of financial position data for Qualcomm as of the end of September 2012. a. How much did Qualcomm have in cash and short-term...
A local bookstore is considering adding a coffee shop to their store. Building the coffee shop will cost $256,340.00 today. The bookstore is going to try this project for five years. The bookstore...
What is the depreciation deduction, using each of the following methods, for the second year for an asset that costs $40,000 and has an estimated MV of $5,000 at the its seven-year useful life?...
How do we use the simulation analysis for financial decision making

Why do you think shareholders from target companies enjoy an average gain when acquired, while acquiring shareholders

Question:

Step by Step Answer:

The acquiring firm has to compete against ...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Business questions