Which of the Following Is Not True of an Acquisition

question 54

Multiple Choice

Which of the following is not true of an acquisition of equity or tender offers?

• A)No equityholder meetings need to be held.
• B)No vote is required.
• C)The bidding firm deals directly with the equityholders of the target firm.
• D)In most cases, 100% of the equity of the target firm is tendered.
• E)All of the above are true of tender offers.

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Definitions:

Accrued Interest

Interest that has been earned but not yet paid, representing the amount owed to a lender for the use of borrowed funds or owed by a borrower.

Principal

The original sum of money borrowed in a loan, or the initial amount invested, excluding any interest or dividends.

Payment

The act of transferring money, or its equivalent, from a buyer to a seller as compensation for goods or services.

Effective Interest Method

A method of calculating the amortized cost of a bond or loan based on periodic cash flows and interest expense adjustments.