Academic research indicates that on average acquisitions do not create shareholder value for acquiring firms. Using examples to support your response, give some explanations for this observation.
What will be an ideal response?
Feedback: Research shows that a majority of acquisitions of public corporations result in value destruction rather than value creation. Many other large multinational firms have also failed to effectively integrate their acquisitions, paid too high a premium for the common stock of the target, or were unable to understand how the assets of the acquired firm would fit with their own lines of business. And, at times, top executives may not have acted in the best interests of shareholders. That is, the motive for the acquisition may have been to enhance the executive power and prestige rather than to improve shareholder returns. At times, the only other people who may have benefited were the shareholders of the acquired firms-or the investment bankers who advise the acquiring firm because they collect huge fees up front regardless of what happens afterward. See Exhibit 6.1 for some examples.
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Indicate whether the statement is true or false
Consider the network diagram given in Figure 1. Assume that the amount on each branch is the distance in miles between the respective nodes. What is the shortest route from the source node (node 1) to nodes 2, 3, and 4?
Indicate the total distance for each route.