Which One of These Statements Is True

question 10

Multiple Choice

Which one of these statements is true?

• A)The NPV of a merger can only be shared with the target firm's shareholders if the merger is financed with cash.
• B)A cash acquisition affects the control of a bidder firm.
• C)An acquisition financed with shares of stock is generally a tax-free transaction for all involved shareholders.
• D)A cash acquisition causes the shareholders of the target firm to share in any merger losses.
• E)A cash acquisition is less expensive than a stock acquisition to the shareholders of the acquiring firm when a merger produces a negative NPV.

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Definitions:

Money

A medium of exchange that facilitates the transfer of goods and services, acting as a measure of value in economic transactions.

Psychological Elements

This term could encompass various aspects such as emotions, perceptions, cognitive functions, and behaviours that constitute the makeup of the human psyche.

Scholarly Influence

Refers to the impact or effect that academic works or scholars have on their fields, shaping research, theory, and practice.

Delineates Relationships

Means to clearly outline or describe the nature of relationships, often used in social sciences to explain how individuals or groups are connected.