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:

Highly Nondirective

An approach in therapy or counseling that emphasizes allowing the client to direct the conversation without significant guidance from the therapist.

Interpersonal Problems

Difficulties in interactions with others, which may involve communication issues, conflicts, or lack of social skills.

Feeding

The act of supplying food for consumption, growth, and health.

Eating Disorder

A mental disorder characterized by abnormal or disturbed eating habits.