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.

---

Definitions:

Environment

The sum of all external conditions and influences affecting the life and development of organisms, including natural, social, and built environments.

Stubborn Personality

A personality trait characterized by a persistent refusal to change thoughts, behaviors, or attitudes despite external pressure or evidence.

Long-Term Relationships

Emotional and social bonds that are maintained between individuals over a prolonged period, typically involving mutual respect, affection, and shared experiences.

Measurement Tools

Instruments or techniques used to evaluate, assess, or quantify variables or phenomena in various fields, such as science, education, and health.