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How Might the Use of Stock, as an Acquisition "Currency

Question 105

Essay

How might the use of stock, as an acquisition "currency," have contributed to the sustained decline in JDS Uniphase's stock through mid-2001? In your judgment what is the likely impact of the glut of JDS Uniphase shares in the market on the future appreciation of the firm's share price? Explain your answer.

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The lofty JDSU share price in 1999 and e...

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