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How Might the Use of Stock, as an Acquisition "Currency

Question 61

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How might the use of stock, as an acquisition "currency," have contributed to the sustained decline in JDS Uniphase's stock through mid-2001? In your judgment what is the likely impact of the glut of JDS Uniphase shares in the market on the future appreciation of the firm's share price? Explain your answer.

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The lofty JDSU share price in 1999 and e...

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