If You Were the Shareholder in a Firm That Became

question 93

Multiple Choice

If you were the shareholder in a firm that became the target of an acquisition bid,which method of payment would stock market evidence suggest signals a better deal?

• A) stock swap
• B) stock/cash mixture
• C) cash for stock
• D) all,if the price is right

---

Definitions:

Daily Demand

The total amount of a good or service that consumers are willing and able to purchase at a particular price in a single day.

Tax

A necessary financial obligation or variant form of imposition placed upon a taxpayer by a governing institution aimed at generating income for government use and public expense funding.

Deadweight Loss

The loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.

Daily Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price on any given day.