Firm a Is Planning to Acquire Firm B

Multiple Choice

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

A) Firm A's managers are optimistic about the post merger value of A
B) Firm A's managers are pessimistic about the post merger value of A
C) Firm A's managers are neutral about the post merger value of A
D) None of the above