The shareholders of firm A have offered one million shares valued at $10 each to acquire firm B After the merger is announced, stock A trades for $9 per share.Which of the following statements is not correct?
A) Firm A appears to have overbid for firm B
B) The NPV of the merger may differ from expectations
C) Shareholders of A absorb all additional "cost"
D) A's stockholders are better off than if the merger were cash financed for $10 million
Correct Answer:
Verified
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