Which of the following are reasons as to why the stockholders in acquiring firms may...

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Finance

Which of the following are reasons as to why the stockholders in acquiring firms may not benefit from an acquisition?

  1. The price paid for the target firm might equal the target firm's total value, including synergies between target and acquirer.
  2. Management of acquiring firms may have priorities other than the interest of the stockholders.
  3. The heavy discount reflected in the Goodwill account becomes tangible on acquirers accounting statements.
  4. The anticipated merger gains may not be fully achieved.

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