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.

Question

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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