Which of the Following Statements Is FALSE

question 42

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 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:

Abnormal Hemoglobin

Variants of hemoglobin differing from the normal composition, which can affect oxygen transport and lead to conditions such as sickle cell anemia.

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the rest of the body and returns carbon dioxide from the body to the lungs.

Blood Sugar Levels

The concentration of glucose present in the blood, important to monitor for maintaining metabolic health and diagnosing diabetes.

Glucose

A simple sugar that is a primary source of energy for the cells of the body.