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In relation to mergers and acquisitions, Franks et al. (1987) study the returns to the bidder across different means of paying for the target company.

In relation to mergers and acquisitions, Franks et al. (1987) study the returns to the bidder across different means of paying for the target company. How do the returns to the bidder offering cash differ from those of the bidder paying with equity? Can you offer a possible explanation?

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