If a multinational firm paid too high a premium for the common stock of the company, this can lead to
A)expansion.
B)cost savings.
C)divestiture.
D)acquisition.

Question

Quizplus · Accepted Answer

Research shows that a majority of acquisitions of public corporations result in value destruction rather than value creation. Many large multinational firms have also failed to effectively integrate their acquisitions, paid too high a premium for the common stock of the company, or were unable to understand how the assets of the acquired firm would fit with their own lines of business.

If a Multinational Firm Paid Too High a Premium for the Common