Firm A is planning to acquire Firm B. If Firm A prefers to make cash offer for the merger it indicates that:

Name: Firm A is planning to acquire Firm B. If Firm A prefers to make cash offer for the merger it indicates that:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A cash offer indicates that Firm A's managers are optimistic about the post-merger value because they prefer to use cash rather than dilute their own shares, suggesting they believe the shares are undervalued or will increase in value post-merger.

Firm a Is Planning to Acquire Firm B