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Which of the Following Have Been Suggested as Reasons Why

question 30

Multiple Choice

Which of the following have been suggested as reasons why the stockholders in acquiring firms may not benefit to any significant degree from an acquisition?
I.the price paid for the target firm might equal the target firm's total value
II.management may have priorities other than the interest of the stockholders
III.the takeover market may not be competitive
IV.anticipated merger gains may not be fully achieved


Definitions:

Income

Income earned, particularly in a consistent manner, from employment or investment returns.

Price

The amount of money expected, required, or given in payment for something.

Commodity X

A placeholder name for a generic commodity or product in economic models or discussions.

Commodity Y

A generic placeholder term used to refer to any tradable item that satisfies wants or needs, but without specifying the item.

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