Which one of the following statements is correct concerning acquisitions?
A) If the acquisition is done on an all cash basis the shareholders of the target firm are excluded from any losses resulting from an unsuccessful merger.
B) Acquisitions done on an all cash basis are generally considered non-taxable events.
C) Acquisitions done utilizing shares of voting common stock have no effects on the control of the post-merger firm.
D) If the acquisition is done on an all cash basis the shareholders of both the acquirer and the acquired firm will gain from any realized future benefits of the merger.
E) The capital structure of the post-merger firm will be the same whether an acquisition is done on a cash basis or on a stock basis.
Correct Answer:
Verified
Q27: Which one of the following is most
Q34: Which one of the following combinations of
Q168: Which of the following is the best
Q169: A transaction involving only one firm, which
Q170: Which one of the following combination of
Q171: A tender offer can best be defined
Q175: _ is a type of transaction which
Q176: Which of the following is the best
Q177: One example of _ is called greenmail.
A)
Q178: The primary difference between a merger and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents