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:

Self-Assessed Training

A learning approach where individuals evaluate their own skills and knowledge to guide their personal development and training needs.

Performance Deficiencies

Gaps between an employee's actual job performance and the expected or desired performance levels.

Affective Outcome

Emotional responses or feelings resulting from an event, intervention, or experience within an organizational context.

Camaraderie

A sense of trust, friendship, and teamwork among members of a group.