A Possible Reason for Little Effect on the Wealth of Acquiring-Company

question 3

Multiple Choice

A possible reason for little effect on the wealth of acquiring-company shareholders in reaction to a takeover announcement even though a takeover might be profitable is:

• A)the expected gains from the takeover may have already been reflected in the company's share price.
• B)the market is inefficient in impounding such information.
• C)that returns to shareholders may have changed over time.
• D)the takeover is not profitable.

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Definitions:

Computer Virus

Malicious software designed to replicate itself and spread from one computer to another, often disrupting computer operations, stealing information, or damaging data.

Purge Program

Typically refers to a systematic effort to eliminate or remove unwanted or unnecessary information, files, or items from a system or space.

Operational Program

A plan detailing the day-to-day activities and procedures a business or organization follows to achieve short-term objectives and run its operations effectively.

Disaster Recovery Planning

Is the strategic process of creating a structured approach with policies and procedures for responding to potential disasters or disruptions to a company’s operations.