Which of the following is a common method used to pay for an acquisition?
A) Increase the market price of existing shares.
B) In a takeover, the winning company does not pay for the acquired firm.
C) Issue a new class of shares.
D) Pay shareholders of the acquired company a combination of shares and cash.

Question

Quizplus · Accepted Answer

Paying shareholders of the acquired company a combination of shares and cash is a common method used to pay for an acquisition. This allows the acquiring company to use their own shares as currency while also providing cash for shareholders who may not want to hold onto the new company's shares.

Which of the Following Is a Common Method Used to Pay