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Many corporate acquisitions result in losses to the acquiring firms' stockholders. Accordingly, why do firms purchase other corporations? Are they simply paying too much for the acquired corporation? A co-worker asks your opinion. Specifically state the reasons for your argument.

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Hi there,

First question, why do firms purchase other corporations? Answer: So that they can grow in an inorganic manner. By this I mean that there are two main ways that one's company can grow. 1) organically - by growing your own ...

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