It has been suggested that the reason why the stockholders in acquiring firms may not benefit to any significant degree from an acquisition is because the price paid for the target firm might equal that firm's total value.

Question

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When the acquiring firm pays a price that equals the total value of the target firm, there is no "bargain" or additional value created through the acquisition. Therefore, the stockholders of the acquiring firm may not see significant benefits or gains from the acquisition, as the cost of acquisition negates potential value gains.

It Has Been Suggested That the Reason Why the Stockholders