Which of the Following Statements Is False

Which of the following statements is false?

A) Market values should be used to determine the value of a firm.
B) In calculating the value of a merger or acquisition only incremental cash flows should be considered.
C) The cost of capital for the target firm is generally considered to be the relevant discount rate associated with a merger or acquisition.
D) Transaction costs should be included when calculating the value of a merger.
E) There will typically be a gain in an acquisition if the target firm's management is better than the management of the acquiring firm.