Mergers can be financed with either cash or common stock of the acquiring firm. Three key factors for consideration when deciding whether to use cash or common stock are control, taxes, and the sharing of gains. Discuss each of these factors and how they affect the cash versus stock decision.

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The Answer of Mergers can be financed with either cash or common stock of the acquiring firm. Three key factors for consideration when deciding whether to use cash or common stock are control, taxes, and the sharing of gains. Discuss each of these factors and how they affect the cash versus stock decision.

Mergers Can Be Financed with Either Cash or Common Stock