According to David Ravenscraft and Mike Scherer's Study, Many Acquisitions

question 97

True/False

According to David Ravenscraft and Mike Scherer's study, many acquisitions destroy rather than create value.

---

Definitions:

Equity Method

An accounting technique used to record investments in other companies where the investor holds significant influence but not full control or majority ownership.

Dividends

Payments made by a corporation to its shareholders, typically from profits, on a per-share basis.

Reduction

The act of decreasing or lowering in amount, quantity, or degree.

Amortized Cost

Amortized cost is an accounting methodology for valuing certain financial assets or liabilities, considering both the initial principal and the interest accrued over time.