Which of the Following Actions by an Acquiring Firm Signals

question 28

Multiple Choice

Which of the following actions by an acquiring firm signals its belief that postmerger gains will be substantially larger than expected?

• A)The acquiring firm makes a stock offer, since its stock value is priced lower than it will be postmerger.
• B)The acquiring firm makes a cash offer, since this allows the acquirer to solely benefit from gains not yet reflected in the market.
• C)The acquiring firm attempts to gain majority ownership, but not complete ownership.
• D)The acquiring firm makes an offer with the condition that management must be replaced.

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Definitions:

Colonoscopy Preparation

The steps taken to clean the colon, including dietary restrictions and laxatives, before undergoing a colonoscopy.

Watery Clear

A liquid that is transparent and free of any clouds or particles.

Large Intestine

The final section of the digestive system, responsible for water absorption and the formation of feces.

Stool Impaction

A condition where hard, dry bowel movements are packed tightly in the intestine or rectum, making them difficult to pass.