Examlex

Solved

The Empirical Evidence Strongly Indicates That the Equityholders of the Target

question 3

Essay

The empirical evidence strongly indicates that the equityholders of the target firm realize large wealth gains as a result of a takeover bid but the equityholders in the acquiring firm gain little,if anything.Although there exists no definitive answer as to why this is the case,several possible explanations have been proposed.List and explain three of these possible explanations for the minimal returns to the acquiring firm's equityholders.


Definitions:

Embryo

An early stage of development in multicellular organisms, in humans, it refers to the first eight weeks of development post-conception.

Placenta

A temporary organ that develops in female mammals during pregnancy, connecting the fetus to the uterine wall for nutrient uptake, waste elimination, and gas exchange via the mother's blood supply.

Fetus

A developing mammal or human from the end of the embryonic period (usually two months after conception) until birth.

Three-Mountain Task

A cognitive development test designed to examine a child's ability to understand different perspectives and viewpoints.

Related Questions