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Which One of These Statements Is Correct

Question 49

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.

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