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:

Parasympathetic Activities

Functions of the parasympathetic nervous system that work to conserve energy and bring the body to a state of rest, such as decreasing heart rate and increasing digestion.

Norepinephrine

A neurotransmitter and hormone associated with the body's stress response and regulation of blood pressure, attention, and alertness.

Hypervigilance

An amplified sensitivity to senses, along with an exaggerated scope of behaviors focused on threat detection.

Chronic Arousal

A continuous state of being physiologically alert and responsive to stimuli.