What Does Empirical Evidence Suggest About the Distribution of Gains

question 2

Multiple Choice

What does empirical evidence suggest about the distribution of gains from mergers?

• A) Shareholders of the acquired firm gain the most.
• B) Shareholders of the acquiring firm gain the most.
• C) Neither group of shareholders is likely to gain.
• D) Both groups of shareholders gain equally.

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Definitions:

Method of Communication

The means or techniques used to convey information or messages between individuals or groups.

Horizontal Analysis

Horizontal Analysis is a financial analysis technique that compares historical financial information over a sequence of reporting periods.