Which of the Following Statements Is False

question 15

Multiple Choice

Which of the following statements is false?

• A) Once the acquirer has completed the valuation process, it is in the position to make a tender offer-that is, a public announcement of its intention to purchase a large block of shares for a specified price.
• B) If we view the pre-bid market capitalization as the stand-alone value of the target, then from the bidder's perspective, the takeover is a positive-NPV project only if the synergies created do not exceed the premium it pays.
• C) Purchasing a corporation usually constitutes a very large capital investment decision, so it requires a more accurate estimate of value that includes careful analysis of both operational aspects of the firm and the ultimate cash flows the deal will generate.
• D) A stock-swap merger is a positive-NPV investment for the acquiring shareholders if the share price of the merged firm (the acquirer's share price after the takeover) exceeds the premerger price of the acquiring firm.

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Definitions:

Heart Defect

A physical defect in the heart present from birth, varying in severity and nature, often requiring medical treatment or surgery.

Facial Deformities

Physical abnormalities or structural anomalies in the facial region, which can be congenital or acquired.

Fetal And Neonatal Deaths

Refers to the death of a fetus during pregnancy or the death of a newborn shortly after birth.

Smoking Mothers

Refers to women who smoke during pregnancy, which can have adverse effects on fetal development and health outcomes.