All of the following statements are correct EXCEPT

All of the following statements are correct EXCEPT


a. immediately after the announcement of a planned acquisition, the stock price of the majority of acquiring firms declines.


b. shareholders of acquired firms often earn above-average returns from an acquisition.


c. the majority of acquisitions increase long-term value for the acquiring firm.


d. shareholders of acquiring firms typically earn returns from the transaction that are close to zero.


Answer: the majority of acquisitions increase long-term value for the acquiring firm.


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