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:

Hygiene Care

Refers to practices related to the maintenance of bodily cleanliness and appearance.

Respiratory Depression

A condition characterized by reduced drive to breathe, often as a result of medication or neurological issues, leading to inadequate ventilation and oxygenation.

Morphine Sulfate

A potent opioid analgesic drug used to relieve severe pain by acting directly on the central nervous system.

Cheyne-Stokes Respirations

A pattern of breathing that cycles between deep, rapid breaths and periods of apnea, often associated with heart failure or brain injuries.