Multiple Choice
Which one of these statements is correct?
A) Cash acquisitions provide greater benefits to acquiring shareholders than stock acquisitions when VAB < VA + VB.
B) Cash acquisitions with positive NPVs are more expensive than comparable stock acquisitions to the acquiring shareholders.
C) Acquiring firms dilute ownership when an acquisition is an all-cash transaction.
D) The cost of a cash acquisition is dependent upon the acquisition gains.
E) The acquiring firm's shareholders are better served if a negative NPV acquisition is a stock,rather than a cash,transaction.
Correct Answer:

Verified
Correct Answer:
Verified
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