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    Fundamentals of Corporate Finance Study Set 14
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    Exam 22: Mergers and Acquisitions
  5. Question
    Most Acquirers Pay an Acquisition Premium for a Target
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Most Acquirers Pay an Acquisition Premium for a Target

Question 17

Question 17

True/False

Most acquirers pay an acquisition premium for a target. Upon announcement of the bid, the target's stock price increases, on average, so that the stock price is the same as the price bid by the acquirer.

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