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How Are the Gains from Mergers Distributed Between the Shareholders

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Essay

How are the gains from mergers distributed between the shareholders of the acquired and acquiring firms?


Definitions:

Investment Opportunity

A potential financial investment that could generate a return or gain.

Manufacturing Cycle Efficiency (MCE)

Process (value-added) time as a percentage of throughput time.

Division's Margin

The profit generated by a specific division within a company after direct costs and expenses attributable to that division are subtracted.

ROI

Return on Investment, a performance measure used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.

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