When Conducting Shareholder Value at Risk (SVAR)analysis for Acquisitions, It

question 79

Multiple Choice

When conducting shareholder value at risk (SVAR) analysis for acquisitions, it is found that:

• A)Acquiring firms that use cash bear all of the risk of the acquisition, while the risk in acquisitions using share swaps is borne by both sets of shareholders.
• B)Acquiring firms that use stock swaps bear all of the risk of the acquisition, while the risk in acquisitions using cash is borne by both sets of shareholders.
• C)The risk of an acquisition is always borne equally between the acquiring firm and target firm shareholders.
• D)None of the above.

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Definitions:

Objectified

Treated as an object or commodity, often reducing a person to their physical attributes or utility rather than recognizing their humanity and individuality.

Knowledge

Information, understanding, or skill obtained through experience or education; the theoretical or practical understanding of a subject.

Archimedean Point

A hypothetical vantage point from which an observer can objectively perceive and evaluate the truth of a matter without any bias or interference.

Sociological Inquiry

The systematic study of social phenomena, involving the examination and explanation of social behaviors, structures, and functions.