Studies of Acquisitions and Mergers Suggest That Shareholders of The

question 22

Multiple Choice

Studies of acquisitions and mergers suggest that shareholders of the:

• A) Bidding firm benefit the most from a merger.
• B) Bidding firm average at least a 5% excess return on a merger.
• C) Target firm have the most to gain from a merger.
• D) Bidding firm benefit in equal proportion to the shareholders of the target firm.
• E) Target firm benefit more if a proxy contest develops.

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Definitions:

Governing Body

is the organization or group of individuals who have the authority to make decisions, set policies, and oversee a community, organization, or governmental entity.

Delegate Council

A body that consists of representatives appointed or elected to act or speak for others.

Cabinet

A group of advisors or ministers chosen by the head of a country to head executive departments and assist in governance.

Mutual Aid

A voluntary reciprocal exchange of resources and services for mutual benefit among a group of people.