Discuss the Main Advantages of an Acquisition

question 61

Essay

Discuss the main advantages of an acquisition.

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Definitions:

Earnings Per Share

A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability on a per-share basis.

Dividends Per Share

The amount of declared dividends for every share of common stock, indicating the dividend payout to shareholders.

Return On

generally starts a financial metric indicating the efficiency of an investment or comparing the efficiency of several investments, measuring profit in relation to capital invested.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as shareholders' equity.