Which of the Following Statements Is False

question 25

Multiple Choice

Which of the following statements is false?

• A) In practice, most acquirers pay a substantial acquisition premium, which is the percentage difference between the acquisition price and the premerger price of the target firm.
• B) When a bid is announced, the target shareholders enjoy a gain of 16% on average in their stock price.
• C) In Canadian provinces, the law requires that when existing shareholders of a target firm are forced to sell their shares, they receive the market price for their shares. In most cases, this concept is interpreted as the value inclusive of any value that arises because of the merger itself.
• D) A bidder is unlikely to acquire a target company for less than its current market value.

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Definitions:

Special Difficulties

Unique challenges or obstacles that are not typical or widespread.

Poor Handwriting

handwriting that is difficult to read due to issues with legibility, consistency, or form, often not meeting expected standards for age or grade level.

Psychological Equilibrium

A state of balance between an individual's cognitive processes and their environment, leading to stable understanding and behavior.

Human Drive

Intrinsic motivation or instinctual urges that propel humans towards certain actions or goals.