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Company D, a movie distribution company, is interested in acquiring Company P, a movie production company. Company P is new and has only produced five

Company D, a movie distribution company, is interested in acquiring Company P, a movie production company. Company P is new and has only produced five movies. However, each movie was very successful at the box office. Company P has a management culture that enables creativity and low attrition rates. Which of these problems should Company D anticipate? 


a. Company D may overpay for Company P, poorly serving Company D's shareholders. 


b. Because most acquisitions are profitable, there is little to worry about in this scenario. 


c. A rival company may imitate this approach by acquiring a similar movie production company. 


d. Company D may underpay for Company P, cheating Company P's shareholders of profit

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