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.

Question

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The Answer of 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.

Which One of the Following Statements Is Correct Concerning Acquisitions