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:

Non-Renewable Fossil Fuels

Natural resources such as coal, oil, and natural gas that cannot be replenished within a human lifespan.

Industrial-Medical Revolution

A significant transformation in industry and medicine, often characterized by technological advancements and improved health care.

Myth Of Superabundance

The belief that natural resources are unlimited and can support endless growth and consumption, which is now widely recognized as unsustainable due to finite resource availability.