Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 28, Problem 4P
Summary Introduction

To describe the reasons why shareholders of target companies enjoy an average gain when acquired, while acquiring shareholders often do not gain anything.

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Why do most acquisitions fail to create shareholder value?
Is it true or false that like common, preferred shareholders are paid from profits and not from revenue?
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