All of the following are potential benefits to a corporation in offering share purchases rather than non-equity compensation except:
A) a share purchase more readily qualifies a merger for a tax-free exchange.
B) a corporation may diminish the perceived dilutive effect of a merger.
C) the shareholders of the acquired firm may defer any capital gains taxes.
D) when the stock is sold,the tax is recognized.
Correct Answer:
Verified
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