Why do many value destroying acquisitions increase earnings

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Reference no: EM131276268

1. What would it take for an acquisition to increase the acquirer's value by 10 percent? Give your answer in terms of size of deal, value of improvements, and premium paid.

2. Why do many value-destroying acquisitions increase earnings per share (EPS)?

3. Describe the circumstances under which the acquirer is better off paying in stock rather than cash. What are the implications for the acquirers' shareholders of paying in stock?

Reference no: EM131276268

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