Multiple Choice
Which of the following is the most appropriate reason for an acquiring firm's shareholders to prefer using stock financing for acquisitions?
A) There is no cash outflow.
B) It mitigates the effects of overvaluation of the target firm.
C) It mitigates the effects of undervaluation of the target firm.
D) It avoids dilution of shares.
Correct Answer:
Verified
Correct Answer:
Verified
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