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

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Definitions:

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, used as a benchmark to decide whether an observed result is statistically significant.

Hypotheses Testing

In statistics, a method that utilizes information from a sample group to evaluate a presumption about a population's parameter.

Kruskal-Wallis Test

A nonparametric test used to compare three or more independent samples to determine if there is a significant difference between their medians.

Ordinal Data

Data that can be ranked or ordered along some dimension but does not have a fixed distance between rankings.