Which of the Following Statements Is FALSE

question 15

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:

Abolitionists

Activists who campaigned for the immediate end of slavery and the emancipation of slaves, particularly prominent in the 19th century.

Morally Wrong

Actions or behaviors that are considered unethical or evil according to societal, cultural, or personal standards.

Economic Threat

A potential risk that could negatively impact the economic stability or growth of a country or region.