PART ONE. How do investors respond to Merger and Acquisition (M&A) announcements? Work with your group members to analyze the data included in the "Mergers and Acquisitions" Excel file. 1. Full-sample analysis . Clearly define the full-sample events provided (period, data source: GSI online) https://wrds-www.wharton.upenn.edu/pages/about/data-vendors/gsionline/ Present the summary statistics (n, mean, minimum, first quartile, median, third quartile, maximum) of a. Cumulative abnormal return on the announcement date (CARO0) b. Two-days cumulative abnormal return from the announcement date (CAR01) 2. Sub-sample analysis . Choose any two sub-samples based on the variables provided (e.g, period, deal specification, transaction value, ...etc.). Clearly define the sample. Present the summary statistics of CARO0 and CARO1. Compare the mean and median of CAR from the sub-sample and that of the full sample from 1 . 3. Interpretation and discussion of your findings: For each subsample analyzed in 2, explain why, in our opinion, do the mean and median of CAR differ from those of the full sample analyzed in 1. PART TWO: Detalied Mergers and Acquisitions (M&A) Work with your group members to select two M&As. Groups that consist of two members only can select only one M&A if they wish. You can select M&As from the "Mergers and Acquisitions" Excel file that covers the years 2000 to 2007, or you can search for a more recent M&As using news websites such as Google, Reuters, or the Pollack Library "News Article" search. Answer the following questions for each M&A. Which companies are the acquirer and the target (i.e., acquiree)? Briefly introduce each company. When did the merger or acquisition occur and what is the acquisition price and percentage of ownership of the acquirer? How did the acquirer pay for the acquisition (e.g., cash, stock, debt)? What is the type of the M&A (for e.g., backward vertical integration, market extension..etc) and what were the expected benefits? Were there any contingent considerations involved? Describe. How did the acquirer account for the M&A (e.g., goodwill/gain)? Notice that accounting for the acquisition differs according to the accouting standard that was effective when the acquisition was completed (pre-2001, 2001-2007, post 2007). How did operating performance change in the long-term (e.g., EPS, ROA/ROE changes before and after the M&A)? In your opinion, is the M&A successful in the long-term? To answer this question, you may consider financial indicators (e.g., EPS, ROA, ROE) and other indicators such as competitiveness, market share, innovativeness...etc. You can also assess whether the expected benefits from the acquisition were realized or not