Question: Prior to beginning work on this discussion, read Chapter 13: Risk and Capital Budgeting in your textbook. Acquisitions are often risky investments for a company.

Prior to beginning work on this discussion, read Chapter 13: Risk and Capital Budgeting in your textbook.

Acquisitions are often risky investments for a company. On December 1, 2017, Deere & Company decided to acquire the stock and certain assets of almost all of Wirtgen Group Holding's operations. For this discussion, address the following:

  • Describe the concept of risk as it pertains to investment decisions.
  • Explain how companies measure the level of risk related to a given investment decision.
  • Discuss risk factors companies should consider with acquisitions.
  • Explain which of these risk factors you see at play in the Deere & Company acquisition.

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