Some Financial Side Effects Of Acquisitions

In addition to the various possibilities we have discussed thus far, mergers can have some purely financial side effects, that is, things that occur regardless of whether the merger makes economic sense or not. Two such effects are particularly worth mentioning: EPS growth and diversification.

Ross et al.: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition

VIII. Topics in Corporate Finance

25. Mergers and Acquisitions

© The McGraw-Hill Companies, 2002

CHAPTER 25 Mergers and Acquisitions

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