Question

Research suggests that, on average, acquisitions increased the market value of target firms by about ________ percent and ________. A. 50; left the market value of the bidding firms unchanged B. 25; left the market value of the bidding firms unchanged C. 50; increased the market value of the bidding firms by 25 percent D. 25; increased the market value of the bidding firms by 15 percent

Answer 1

Answer:

B. 25; left the market value of the bidding firms unchanged.

Explanation:

Research suggests that, on average, acquisitions increased the market value of target firms by 25% and left the market value of the bidding firms unchanged.

This simply means, a target firm's market value increases by 25 percent as soon as a bidding firm shows interest in acquiring or buying it while the bidding firm' market value remains the same.