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PLEASE HELP! 1. 2. The evidence on mergers and acquisitions suggests that the premium an acquirer pays is approximately equal to the value it adds,
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The evidence on mergers and acquisitions suggests that the premium an acquirer pays is approximately equal to the value it adds, which means the target shareholders ultimately capture the value added by the acquirer. True False Funding risk - the risk of incurring financial distress costs in case a firm cannot refinance its debt in a timely manner or at a reasonable rate - is a potential disadvantage of an aggressive financing policy. True False
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