Firms with highly liquid cash positions may be attractive merger candidates, mainly because their cash can be used to pay dividends.

Name: Firms with highly liquid cash positions may be attractive merger candidates, mainly because their cash can be used to pay dividends.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Companies with heavy cash positions are attractive merger and acquisition candidates because of the possibility that a firm with highly liquid assets could be taken over and its own cash used to pay back debt incurred in the takeover.

Firms with Highly Liquid Cash Positions May Be Attractive Merger