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.

---

Definitions:

Dual Nature

The concept that something has two fundamental components or aspects, often seen in discussions about light acting as both a particle and a wave.

Conscious Nature

The attribute or condition of being aware of the environment and one's own existence, sensations, and thoughts.

Unconscious Nature

The aspect of the mind that is not accessible to conscious thought or awareness, yet influences behaviors and emotions.

Public Self

An aspect of an individual's identity that is presented to and perceived by others in social contexts.