When an Acquiring Firm Is Making the Decision to Offer

question 6

Multiple Choice

When an acquiring firm is making the decision to offer either cash or stock for a target,it should be more inclined to offer cash if:

• A)The target is larger.
• B)The target is smaller.
• C)The stock market is in a bubble.
• D)The acquiring firm has relatively low debt-to-equity ratios.

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Definitions:

Daily Functioning

Refers to the routine activities and behaviors performed by an individual on a day-to-day basis.

Immoral

Actions or behaviors that go against accepted moral principles or standards of conduct.

Homosexuality

Romantic or sexual attraction or behavior between members of the same sex or gender.

Psychological Disorder

A pattern of behavioral or psychological symptoms that impact multiple areas of life and/or bring significant distress.