Which One of These Statements Is Correct Regarding Acquisitions

question 53

Multiple Choice

Which one of these statements is correct regarding acquisitions?

• A) The cost of a cash acquisition to the acquiring firm is equal to the cash paid minus the taxes incurred by the target firm's shareholders.
• B) Neither cash nor share acquisitions affect the control of the acquiring firm.
• C) Share financing is generally more common than cash financing for smaller acquisitions.
• D) Target firm shareholders share in both the gains and losses resulting from a stock acquisition.
• E) Cash acquisitions create a tax liability for the acquiring firm's shareholders.

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A series of treatises on law aimed at summarizing the legal standards in various fields of American law.

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