Discuss the Advantages of Acquisitions as a Mode of Establishing

question 55

Essay

Discuss the advantages of acquisitions as a mode of establishing fully owned subsidiaries,giving examples wherever possible.

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Definitions:

Preferred Dividends

Payments made to preferred shareholders of a company before dividends are paid to common shareholders, typically fixed and paid at regular intervals.

Average Common Stockholders' Equity

It represents the average equity stake that common shareholders have in a company over a certain period, calculated by averaging the opening and closing common stockholders' equity balances.

Earnings Per Share

A financial indicator that divides a company's profit by the outstanding shares of its common stock, measuring the company's profitability per share.

Fixed Assets

Long-term tangible assets that a firm uses in its operations and that are not expected to be consumed or converted into cash within a year.