Which of the Following Statements Is False

question 38

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 15% on average in their stock price.
• C)In most U.S.states,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:

Risk For Poisoning

The potential hazard for an individual to accidentally or intentionally ingest or come into contact with poisonous substances.

Acetaminophen

A medication used to relieve pain and reduce fever, known for its mild to moderate pain-relieving effects.

Alprazolam

A prescription medication classified as a benzodiazepine, primarily used to manage anxiety disorders and panic attacks.

Hypothermia

A medical emergency condition where the body loses heat faster than it can produce, causing a dangerously low body temperature.