Which of the Following Statements Is FALSE

question 15

Multiple Choice

Which of the following statements is FALSE?

• A)In practice,most acquirers pay a substantial acquisition premium,which is the percentage difference between the acquisition price and the premerger price of the target firm.
• B)When a bid is announced,the target shareholders enjoy a gain of 15% on average in their stock price.
• C)In most U.S.states,the law requires that when existing shareholders of a target firm are forced to sell their shares,they receive the market price for their shares.In most cases,this concept is interpreted as the value inclusive of any value that arises because of the merger itself.
• D)A bidder is unlikely to acquire a target company for less than its current market value.

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Definitions:

Battle

is a combat between two or more armed forces or combatants, typically involving physical violence and strategy.

Olfactory Receptors

Specialized neurons in the nasal cavity that are responsible for the detection of odor molecules, leading to the sense of smell.

Gas Leak

The escape of gas, typically from a pipeline or container, into an area where it might pose a risk or danger.

Alerting

The process of quickly bringing to conscious attention any stimuli that signal a change in the environment, enabling an individual to prepare to respond.