A Bidder May Choose to Use Cash Rather Than to Issue

question 124

True/False

A bidder may choose to use cash rather than to issue voting shares if the voting control of its dominant shareholder is threatened as a result of the issuance of voting stock to acquire the target firm.

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Definitions:

Compressive Strength

The capacity of a material or structure to withstand loads tending to reduce size, typically measured in pounds per square inch or megapascals.

Injection Molding

A manufacturing process for producing parts by injecting material into a mold, commonly used with plastics but also other materials.

Upper Control Limit

In statistical quality control, the threshold above which a process is considered to be out of control.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from their mean.