Research Suggests That,on Average,acquisitions Increased the Market Value of Target

question 83

Multiple Choice

Research suggests that,on average,acquisitions increased the market value of target firms by about ________ percent and ________.

• A) 50; left the market value of the bidding firms unchanged
• B) 25; left the market value of the bidding firms unchanged
• C) 50; increased the market value of the bidding firms by 25 percent
• D) 25; increased the market value of the bidding firms by 15 percent

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Definitions:

Services

Intangible products offered to consumers and other businesses, such as banking, education, and healthcare, which unlike goods, are not physical objects.

Autonomous Consumption

The level of consumption expenditure that occurs when income is zero, reflecting the basic level of consumption necessary for survival.

Wealth Effect

The change in spending that accompanies a change in perceived wealth, usually referring to the increase in consumer spending following an increase in asset values.

Consumption

The use of goods and services by households, constituting one of the primary components of aggregate demand in an economy.