Q3. Around the announcement date of a merger, acquiring firm shareholders of large publicly traded firms normally earn a. –20% abnormal returns b. Zero to slightly negative returns c. Zero to 30% positive abnormal returns d. 100% positive abnormal returns e. Zero to slightly positive returns

Q3. Around the announcement date of a merger, acquiring firm shareholders of large publicly traded firms normally earn a. –20% abnormal returns b. Zero to slightly negative returns c. Zero to 30% positive abnormal returns d. 100% positive abnormal returns e. Zero to slightly positive returns

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Q3. Around the announcement date of a merger, acquiring firm shareholders of large publicly traded firms normally earn

a. –20% abnormal returns

b. Zero to slightly negative returns

c. Zero to 30% positive abnormal returns

d. 100% positive abnormal returns

e. Zero to slightly positive returns

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