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Firm a Is Planning to Acquire Firm B

Question 53

Multiple Choice

Firm A is planning to acquire Firm B. If Firm A prefers to make a cash offer for the merger, it indicates that


A) firm A's managers are optimistic about the postmerger value of A.
B) firm A's managers are pessimistic about the postmerger value of A.
C) firm A's managers are neutral about the postmerger value of A.
D) firm A's managers are neutral about the postmerger value of B.

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