When publicly-traded corporations engage in mergers & acquisitions (M&A), managers present the market with the rationale...

 

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"When publicly-traded corporations engage in mergers & acquisitions (M&A), managers present the market with the rationale for the deal and why they expect it to create value for shareholders. Most ex-ante transaction analysis includes an analysis of potential earnings per share (EPS) accretion/dilution resulting from the proposed deal." [Lynagh, 2014] (a) Explain the above statement. [5 marks] (b) Recommend other transaction analysis apart from the one discussed in the statement. [20 marks] [Total: 25 marks] "When publicly-traded corporations engage in mergers & acquisitions (M&A), managers present the market with the rationale for the deal and why they expect it to create value for shareholders. Most ex-ante transaction analysis includes an analysis of potential earnings per share (EPS) accretion/dilution resulting from the proposed deal." [Lynagh, 2014] (a) Explain the above statement. [5 marks] (b) Recommend other transaction analysis apart from the one discussed in the statement. [20 marks] [Total: 25 marks]

Answer rating: 100% (QA)

a The statement highlights the importance of analyzing potential earnings per share EPS accretion or dilution when publiclytraded corporations engage ... View the full answer